A recent article from a Peking University professor advocating higher prices on luxury homes has stirred up a firestorm of discussion in China. To summarize the piece's central argument, more expensive luxury homes will bring the government more fiscal revenue which can then be used to fund affordable housing projects for low-income earners.

This line of reasoning sounds logical enough, but in fact it is filled with holes. For one thing, even if local governments do earn more in taxes from luxury home sales, there is still nothing to force them to put this money into low-cost home construction. With so many infrastructure projects all over in China in need of financing, it's possible that affordable housing projects would see just a tiny fraction of any additional tax revenue.

While the benefits of higher luxury home costs are few, the harm pricier properties would inflict on the market is obvious. Raising costs on up-scale properties will only lift average home prices and create a bubble in the housing market.

The author is Pan Fan, a media personality.