Wool effect: refers to the government's tax increase on a certain industry, such as tobacco and real estate. On the surface, it is to increase taxes for enterprises, and enterprises themselves can't bear it. In the end, enterprises will pass it on to consumers by raising product prices, and consumers will eventually pay the bill.

That is to say, wool is on sheep.

take for example

On February 1 2007, according to the notice issued by State Taxation Administration of The People's Republic of China, People's Republic of China (PRC), the land value-added tax was formally levied. The market expects that it is a foregone conclusion that the land value-added tax will be levied at the four-level cumulative tax rate, which will greatly reduce the profit of real estate development.

However, developers have enough ability to make use of the demand to make a fuss, and pass on the increased cost due to the government's land value-added tax to buyers, so that the wool will be on the sheep. It is more practical to pay attention to this point.