Ironies abound in the story of how China is considering a “U.S. style annual tax” based on home values. The driving motivation: raise revenue for local government and dampen the growing real estate bubble arising from speculative demand. Yes, taxes do that. But property taxes didn’t prevent the U.S. bubble, and the dependence of local government on the the revenue stream has led to a draining away from government revenue since the bubble popped.
What will these commies think of next? U.S.-style regulation on toilet-tank size? U.S-style limits on using cash? U.S.-style bailouts of failing industries?