China is shifting as growing powers do: It wil begin including the price of land when calculating commercial real estate tax."Analysts expect Shanghai and Chongqing to be the first cities to launch the tax, which will form part of the government's efforts to damp property speculation due to high housing prices and provide a recurring source of income for local governments to reduce their reliance on income from land sales."
NASDAQ News: China Real Estate Tax To Be Based On Property Value Including Land CostAccording to a January 8, 2011 article on the NASDAQ web site, land value taxation will now be a component of taxation the Peoples' Republic to tamp down land speculation, high land prices, and to fund local government.
The efforts of government in China to cool down an overheated real estate market is in stark contrast to the recent experience of Ireland, the US the UK and many other nations which let mortgages and lending based on inflated land values ruin domestic economies and choke funding to government. Let's hope this does not presage the omens of the leading US economists that the best days of the US are behind them, as China surges ahead in power, wealth and prestige.