This paper analyzes the impact of the high-value real estate tax(HRET) on macroeconomic variables such as house prices, rents, and inequality. To cite specific historical episodes, I leverage Korea's comprehensive real estate tax, typically levied on housing assets owned by the top one percent. While previous research on this topic uses time-series empirical methods, this approach faces challenges in specifying the pure effect of the HRET when other macroeconomic factors, such as interest rate or borrowing conditions, are not well-controlled. To address these issues, I construct a heterogeneous agent model that captures the features of housing market structures well and attempts a counterfactual analysis to see the effect of the HRET through comparative statics of stationary equilibrium. As a result of the study, HRET contributes to increasing house prices and rents while reducing consumption inequality. 

The underlying mechanism of these results is as follows. This phenomenon can be understood through the asset pricing equation for price variables. Rent constitutes a form of cash flow from housing assets. When taxes are imposed on housing assets, it raises the marginal cost of purchasing a house. Consequently, imposing the high-value real estate tax increases rents and house prices. For consumption inequality, the negative impact on consumption primarily concentrates on landlord classes. Renters' consumption decreases slightly, but owner-occupier consumption mainly increases due to the effects of mortgage leverage from the increments of the collateral house values. Hence, HRET's improvement in the consumption Gini coefficient is mainly driven by the enhancement of the middle class. This conclusion remains mostly the same, even considering the government's budget constraints.