1/5
Very interesting article about rising opposition – from both homeowners and local officials – to property taxes designed to reduce or eliminate speculation in the property market. This is a point some of us have been making for years:
wsj.com/articles/in-ta… via @WSJ
Very interesting article about rising opposition – from both homeowners and local officials – to property taxes designed to reduce or eliminate speculation in the property market. This is a point some of us have been making for years:
wsj.com/articles/in-ta… via @WSJ
2/5
Once the systemic imbalances created by institutional distortions are deep enough, any attempt to remove those distortions will be painful and likely to arouse opposition – and the deeper the imbalances, the greater the opposition.
Once the systemic imbalances created by institutional distortions are deep enough, any attempt to remove those distortions will be painful and likely to arouse opposition – and the deeper the imbalances, the greater the opposition.
3/5
I would add that those who worry that property taxes could set off a decline in property prices which, in turn, could hurt consumer spending, are right. But this is an insoluble problem. Highly speculative markets don't stabilize – they either rise or fall.
I would add that those who worry that property taxes could set off a decline in property prices which, in turn, could hurt consumer spending, are right. But this is an insoluble problem. Highly speculative markets don't stabilize – they either rise or fall.
4/5
Anything that suppresses the housing bubble, in other words, risks setting off a housing decline. I would argue that the best solution for China is what is mentioned later in the article: "Under this idea, China would essentially go back to a 'dual-track' system with...
Anything that suppresses the housing bubble, in other words, risks setting off a housing decline. I would argue that the best solution for China is what is mentioned later in the article: "Under this idea, China would essentially go back to a 'dual-track' system with...
5/5
government-subsidized housing offered alongside commercial housing." Subsidized housing for the poor is among the most effective ways of transferring income from local governments to ordinary Chinese (although it would still have an adverse effect on housing prices).
government-subsidized housing offered alongside commercial housing." Subsidized housing for the poor is among the most effective ways of transferring income from local governments to ordinary Chinese (although it would still have an adverse effect on housing prices).
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