Is it feasible to levy the "Generational Justice Tax" to build social housing?

Wang Jianjian, vice president of the Chinese Academy of Economics, said recently that a 2% to 3% tax can be added to the combined tax on housing and land as a "generational justice tax" to be used to build social housing, so that young people and the disadvantaged can not buy it. If you want to rent a house, let them afford it. The starting point of this statement is worthy of recognition, but it ignores two facts:

1. In fact, in the current "Measures for the Distribution and Utilization of Income Taxes for Income Taxes under the Integration of Housing and Landscaping", it is stated that "the balance of the (integration of housing and land tax) income is deducted from the central government and allocated to local governments, and is used for housing policies and policies. Allocation of Expenditures for Long-Term Care Services”.

That is to say, in the system, the current income from the integration of real estate and land can be allocated to the construction of social housing. But the actual situation is that from 105 to 108, the combined tax of real estate and land has injected a total of about 13.7 billion yuan into the long-term care fund, and the residential sector has not received a dime.

2. Affordability cannot rely solely on social housing. The key lies in the rectification of the housing market and the black market for rental housing. According to different survey data, the rental housing market in Taiwan is about 850,000 to 1.1 million, and even if 120,000 social housing units have been built, it is only a minority. But the current situation is that the government not only does not want to deal with it, but even basic statistical surveys are missing.

On the other hand, if house prices and rents continue to soar, and renters cannot apply for subsidies and lack security, it will cause people who could have bought a house to go to rent, and those who could have rented will squeeze into social housing. The demand pressure will increase greatly, and even more caps will not be enough.