Demand Realistic Property Tax Reporting

Demand Realistic Property Tax Reporting
China Times editorial (Taipei, Taiwan, ROC)
A Translation
August 30, 2011

Summary: Rich folk living in 100 million yuan mansions cannot understand what it is like to be broke and live in a tent. Banquet guests riding elevators to the top of luxury high rises pay scant attention to what life is like for those at the bottom of the economic ladder. To learn what it was like to be poor, Ph.D and former New York Times columnist Barbara Ehrenreich worked as a waitress and a cleaning woman. She related her experience in her book, "Nickel and Dimed: On (Not) Getting By in America." As she noted, when the economy is good, housing prices soar. As a result the poor are afflicted not by poverty, but by prosperity.

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Rich folk living in 100 million yuan mansions cannot understand what it is like to be broke and live in a tent. Banquet guests riding elevators to the top of luxury high rises pay scant attention to what life is like for those at the bottom of the economic ladder. To learn what it was like to be poor, Ph.D and former New York Times columnist Barbara Ehrenreich worked as a waitress and a cleaning woman. She related her experience in her book, "Nickel and Dimed: On (Not) Getting By in America." As she noted, when the economy is good, housing prices soar. As a result the poor are afflicted not by poverty, but by prosperity.

The United States is the world's economic leader. When the real estate bubble burst, millions of houses were repossessed. Tent cities sprung up everywhere. During the Asian financial crisis, tent cities sprung up in public parks all over Japan. In recent years this has led to concern about young people becoming "Internet cafe refugees." A Japanese Ministry of Health survey found that 60% of those who squat in Internet cafes are day laborers. They are classic examples of poor but overworked families.

On Taiwan, a new generation of young homeless people squat in Internet cafes. According to a survey by the Homeless of Taiwan Association, those aged 26 to 35 account for 10% of the homeless near the Taipei Railway Station. Homeless persons born in the 1980s are on the rise. They are less educated, low-skilled workers. Some may find work this month, only to get laid off the next. Such instability means they have no steady income. They cannot afford to rent a house. All they can do is squat in Internet cafes.

Globalization, advances in technology, inequities in the social structure and tax system, have all widened the gap between rich and poor. When the economy is strong, those at the top of the economic pyramid and export-related industries benefit the most. But when the stock market rises, housing costs soar. People at the bottom of the economic pyramid can no longer keep up with soaring housing costs. They experience a greater sense of deprivation. Even worse, when the economy takes a downturn, they are the ones hardest hit.

The DGBAS has announced the results of its latest Household Income and Expenditure Survey. Household income is divided into five brackets. Last year, the wealthiest households had disposable income 6.19 times as high as the poorest. This is a slight improvement over the previous year. It is the third highest in history. The historical data shows that the gap increased from 4.97 times in 1991, to 6.19 times today. This is the largest increase in two decades, and shows that the government must work harder to narrow the gap between rich and poor.

Consider the effect of government transfer payments on families. According to DGBAS statistics, social welfare payments and tax transfers last year reduced the income gap 1.5 times. Social welfare had the largest impact, at 1.4 times. The impact of taxation was only 0.11 times, a record low. These numbers show that over the years government efforts to narrow the income gap have steadily increased the role of social welfare, while steadily decreasing the role of taxation. This calls for soul-searching. The original function of taxation was income redistribution. Now its impact is diminishing, mainly because the tax system is unfair, but also because repeated tax cuts have been made over the years.

As we all know, stocks and real estate are the main source of income for the rich. Transactions on the stock exchange are tax-free. Real estate taxes have little to do with actual sale prices. These phenomenon have long been targets of criticism, Such a tax system contributes to soaring housing prices. It also widens the gap between rich and poor.

To curb housing speculation, and to narrow the gap between rich and poor, DPP presidential candidate Tsai Ing-wen has proposed a real estate tax on residential properties not occupied by the owner. A tax system based on actual selling prices will be gradually phased in. Tsai however, offered no specifics on how it would be implemented. President Ma Ying-jeou subsequently announced five measures to ensure more equitable land and housing ownership. In a report to the Executive Yuan, Finance Minister Li Shu-teh said the current value of land and the assessed value of real estate would be gradually adjusted in the coming years, bringing them closer to market prices. This would eventually enable taxation based on actual prices. Observers are skeptical. Increasing the real estate tax will increase the powers and responsibilities of local government. This would have to be assessed by county council committees. This would not be up to the central government. This is the main reason property taxes have been based on numbers far below actual market prices.

From the perspective of tax fairness, a realistic property tax would certainly help narrow the wealth gap. But the real estate industry would react violently, making such a reform impossible for many decades. Twenty years ago, when Wang Chien-hsuan was Treasury Minister, he tried to promote taxation based on actual selling prices. He learned a painful lesson. His successors avoided the problem altogether. The KMT and DPP are now proposing property taxes based on actual selling prices. This is a rare opportunity for property tax reform. But how can this objective be achieved? Neither party has offered any specifics.

One hundred million yuan mansions and tattered tents are as far from each other as night and day. An unfair tax system has widened the gap even more. The presidential election however, has inspired candidates from both parties to propose property taxes based on actual selling prices. For this, they deserve praise. Accurate reporting of selling prices is a precondition for taxation based on actual selling prices. But how can tax rates based on actual selling prices be implemented? Both parties must offer concrete and feasible approaches. Only this can win public support, Goals and slogans alone will not do the trick.

不動產實價課稅 勿淪為選舉口號
2011-08-30 中國時報

住在億元豪宅裡的富人，很難體會窮人住在帳篷裡的滋味；登上摩天大樓吃奢華大餐的人，很少會注意底層民眾的日子怎麼過。擁有博士學位、前《紐約時報》專欄作家芭芭拉．艾倫瑞克為了體驗貧窮，化身為女服務生、清潔工寫成《我在底層的生活》一書，她深刻感受到，景氣好、房價飆的榮景下，「窮人其實不是受貧窮之苦，而是繁榮之害。」

美國身為全球經濟龍頭，在房地產泡沫破滅後，數百萬人的房子被查封，各地出現了許多帳篷族。亞洲金融風暴後，日本各地公園裡也曾出現大量帳篷族，近年來引發各界關注的是年輕人淪為「網咖難民」。日本厚生省調查發現，留宿網咖者有六成是領取日薪的臨時工，他們是典型的窮忙族。

在台灣，有批年輕新世代遊民隱身網咖裡。據當代漂泊協會調查，台北車站附近遊民介於廿六至卅五歲間占一成，七年級遊民有增加趨勢，他們屬低學歷、低技術的派遣工，有人這個月找到工作，下個月就被通知不必來了，由於工作不穩定，收入不固定，又租不起房子，最後只好淪落至網咖。

全球化效應下，科技的進步、社會結構與租稅制度的不公平，擴大了貧富差距。經濟表現強勁時，金字塔頂端與出口相關產業受惠最大；不過，股市漲、房價飆，底層民眾的所得跟不上房價飆漲的速度，相對剝奪感也越大；更糟的是，景氣反轉時，他們受到的衝擊最大。

主計處日前公布最新家庭收支調查，去年家戶可支配所得五等分位差距倍數為六點一九倍，較前一年微幅縮小，為史上第三高。從歷史資料看，這項差距從一九九一年的四點九七倍增加至六點一九倍，二十年來呈現明顯增加的趨勢，也顯示政府在縮小貧富差距方面必須再加把勁。

再看政府對家庭移轉收支的效果，依主計處統計，去年政府透過社福與租稅移轉收支縮減所得差距達一點五三倍，其中，社福效果占了大部分，為一點四二倍，而租稅效果僅達○點一一倍，創下歷年新低。這項統計顯示，歷年來政府努力縮小所得差距，社福的比重越來越高，租稅的效果越來越低。值得檢討的是，原本應發揮所得重分配功能的租稅制度，如今效果卻是越來越萎縮，主要是稅制的不公，同時也與歷年來不斷的減稅政策有關。

眾所周知，股票與房地產是富人的主要所得來源，我國除了證券交易所得免稅之外，不動產稅負與實際交易價格脫鉤，長期以來為人詬病，這樣的租稅制度不僅助長房價飆漲，更進一步擴大了貧富差距。

為了抑制房價的人為炒作，縮小貧富差距，民進黨總統參選人蔡英文日前提出非自用住宅依實價課稅的原則，將分階段建立實價課稅制度，不過並未提出具體做法。馬英九總統隨後宣布五大措施，以落實土地、居住正義，財長李述德在行政院院會中報告，將逐年調整土地公告現值及房屋評定現值，使其更接近市場價格，逐步達成實價課稅的效果。外界也質疑，調高不動產課稅稅基屬地方政府權責，必須由各縣市評議委員會來評定，並非中央說了算，這也是歷年來不動產課稅稅基遠低於市價的主因。

從租稅公平的觀點，不動產實價課稅當然有助於縮小貧富差距。然而，不動產業者的強烈反彈，使得這項改革數十年來始終無法推動；二十年前王建?在財長任內推動實價課稅的慘痛經驗，也使得後繼者避之唯恐不及。這回兩黨均提出不動產依實價課稅的大方針，為不動產稅制改革帶來了一個難得的契機。不過，究竟如何落實這個目標，兩黨尚未提出具體做法。

億元豪宅與破爛帳篷間的距離有如天壤之別，不公平的稅制更擴大了其間的差距。總統大選前，兩黨候選人不約而同提出不動產實價課稅的主張，值得肯定；實價登錄是實價課稅的基礎，但如何落實在實價課稅上，兩黨都必須進一步提出具體可行的做法，才能真正獲得民眾的認同，畢竟，空有目標與口號難以成事。