Housing prices have been on the rise since the start of the fast growing economy. China's cities such as Shanghai and Chongqing have implemented new property tax for those who are putting down payments on second homes. Also, the government has made owners of two houses unable to purchase any more houses. In Chongqing, they specifically are introducing a luxury tax on luxury homes, where as in Shanghai, it only applies to those who own more than one property. In the future, the Chinese government plans on increasing the construction of government subsidized housing.
These kinds of taxes will help continue to grow the middle class and allow them to live comfortably in the one of the largest economies in the world.
2 comments:
I agree with the idea of the property tax. It will result in less evictions and give the tax payers more say, which are both good things. It will allow the government to function better while protecting the low to middle class citizens.
I think the Chinese government is taking good steps to keep housing prices from rising too quickly and preventing speculation from inflating prices to very high levels. The 2 house limit is great to prevent a similar crisis that occured in the united states.
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