Analysis of the Impact of Property Tax on Property Wealth Effect

Abstract

Contemporarily, with the boosting value of China's real estate prices as well as the prospers of the market, family real estate wealth also increases. Based on the data of China Household Finance Survey (CHFS) in 2019, this paper investigates and discusses the impact of household property wealth on household consumption and the impact of property tax on the property wealth effect. Empirical research shows that real estate wealth has a significant positive impact on household consumption. In other words, the increase of it has a significant promoting effect on household consumption. The property tax has a significant restraining effect on the wealth effect of real estate. According to the analysis, a number of relevant policy suggestions are put forward to help accelerate economic development, promote consumer consumption, stabilize employment, and improve people's well-being. Overall, these results shed light on guiding further exploration of the impact of property taxes on household consumption.