Influence of Property Tax on Household Consumption - Based on Calculation of Property Tax Burden

Abstract

Property tax is a crucial part of tax policy, and it also plays an important
role in regulating household consumption. In order to objectively evaluate the impact
of property tax on household consumption, this paper redefines the statistical
measures of residents’ burden of property tax, and calculates the property tax burden
of Chinese residents using a statistical approach to analyse flow of funds. It is
concluded that real estate tax have a certain impact on household asset choice and
consumption. Based on this conclusion and the long-term effect of taxation, a series
of proposals of establishing a proper property tax scheme are put forward in this
paper.