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Estimates of average marginal tax rates on factor incomes in Japan

  • Gunji, Hiroshi
  • Miyazaki, Kenji

In this paper, we estimate average marginal tax rates on factor incomes in Japan from 1963 to 2007. We adapt the method of D.H. Joines [Estimates of effective marginal tax rates on factor incomes. J. Bus. 54 (2), 191-226.] to the Japanese tax and social security system. Average marginal tax rates on labor incomes without social security premiums range from 14% to 21%, whereas the rates on incomes with social security have increased from 21% to 33%. Tax rates on capital incomes have fluctuated between 35% and 58%. We also compare our estimates with average tax rates and the wedges from business cycle accounting.

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Article provided by Elsevier in its journal Journal of the Japanese and International Economies.

Volume (Year): 25 (2011)
Issue (Month): 2 (June)
Pages: 81-106

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Handle: RePEc:eee:jjieco:v:25:y:2011:i:2:p:81-106
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622903

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