IDEAS home Printed from https://ideas.repec.org/p/dpr/wpaper/0660.html
   My bibliography  Save this paper

Tax Reform in Japan: The Case of Personal Taxes

Author

Listed:
  • Charles Yuji Horioka
  • Shizuka Sekita

Abstract

In this paper, we conduct a theoretical analysis of personal taxes (defined to include consumption and income taxes), describe and evaluate the past and present structure of personal taxes in Japan, and based on our findings, make a number of policy recommendations about how to reform personal taxes in Japan. We find that the structure of Japan's current consumption and income taxes is problematic from the viewpoints of both efficiency and equity and propose a reform package that improves both the efficiency and equity of Japan's personal taxes and, at the same time, achieves fiscal reconstruction.

Suggested Citation

  • Charles Yuji Horioka & Shizuka Sekita, 2006. "Tax Reform in Japan: The Case of Personal Taxes," ISER Discussion Paper 0660, Institute of Social and Economic Research, Osaka University.
  • Handle: RePEc:dpr:wpaper:0660
    as

    Download full text from publisher

    File URL: https://www.iser.osaka-u.ac.jp/library/dp/2006/DP0660.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. W. J. Corlett & D. C. Hague, 1953. "Complementarity and the Excess Burden of Taxation," Review of Economic Studies, Oxford University Press, vol. 21(1), pages 21-30.
    2. Tatsuo Hatta, 2004. "A Theory of Commodity Tax Reform under Revenue Constraint," The Japanese Economic Review, Japanese Economic Association, vol. 55(1), pages 1-16, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Miyazaki, Takeshi & Ishida, Ryo, 2022. "Estimating the elasticity of taxable income: Evidence from top Japanese taxpayers," Japan and the World Economy, Elsevier, vol. 61(C).
    2. Junmin Wan, 2010. "The Incentive to Declare Taxes and Tax Revenue: The Lottery Receipt Experiment in China," Review of Development Economics, Wiley Blackwell, vol. 14(3), pages 611-624, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yoshitomo Ogawa, 2007. "The optimal commodity tax structure in a four-good model," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 14(6), pages 657-671, December.
    2. Charles Yuji Horioka & Shizuka Sekita, 2004. "An Assessment of Consumption and Income Taxes in Japan," ISER Discussion Paper 0624, Institute of Social and Economic Research, Osaka University.
    3. Knud Jørgen Munk & Bo Sandemann Rasmussen, 2005. "On the Determinants of Optimal Border Taxes for a Small Open Economy," Economics Working Papers 2005-22, Department of Economics and Business Economics, Aarhus University.
    4. Hellwig, Christian & Werquin, Nicolas, 2022. "A Fair Day's Pay for a Fair Day's Work: Optimal Tax Design as Redistributional Arbitrage," TSE Working Papers 22-1284, Toulouse School of Economics (TSE), revised Jan 2023.
    5. Jing Xing, 2011. "Does tax structure affect economic growth? Empirical evidence from OECD countries," Working Papers 1120, Oxford University Centre for Business Taxation.
    6. Vidar Christiansen & Stephen Smith, 2009. "Externality-correcting Taxes and Regulation," CESifo Working Paper Series 2793, CESifo.
    7. Hirte, Georg & Tscharaktschiew, Stefan, 2018. "The impact of anti-congestion policies and the role of labor-supply margins," CEPIE Working Papers 04/18, Technische Universität Dresden, Center of Public and International Economics (CEPIE).
    8. David Albouy & Andrew Hanson, 2014. "Are Houses Too Big or In the Wrong Place? Tax Benefits to Housing and Inefficiencies in Location and Consumption," Tax Policy and the Economy, University of Chicago Press, vol. 28(1), pages 63-96.
    9. Louis Kaplow, 2011. "An Optimal Tax System," NBER Working Papers 17214, National Bureau of Economic Research, Inc.
    10. Christian Gillitzer & Henrik Jacobsen Kleven & Joel Slemrod, 2017. "A Characteristics Approach to Optimal Taxation: Line Drawing and Tax‐Driven Product Innovation," Scandinavian Journal of Economics, Wiley Blackwell, vol. 119(2), pages 240-267, April.
    11. Casper Ewijk & Bas Jacobs & Ruud Mooij, 2007. "Welfare Effects of Fiscal Subsidies on Home Ownership in the Netherlands," De Economist, Springer, vol. 155(3), pages 323-336, September.
    12. Henrik Jordahl & Luca Micheletto, 2005. "Optimal Utilitarian Taxation and Horizontal Equity," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 7(4), pages 681-708, October.
    13. Stiglitz, Joseph E., 2018. "Pareto efficient taxation and expenditures: Pre- and re-distribution," Journal of Public Economics, Elsevier, vol. 162(C), pages 101-119.
    14. Valeria De Bonis & Luca Spataro, 2005. "Taxing Capital Income in a Perpetual Youth Economy," STUDI ECONOMICI, FrancoAngeli Editore, vol. 2005(87).
    15. Langenmayr Dominika & Mittermaier Ferdinand, 2021. "Nachhaltiges Wirtschaften, nachhaltig finanziert: Herausforderungen für die Politik in den 2020er Jahren," Perspektiven der Wirtschaftspolitik, De Gruyter, vol. 22(3), pages 176-190, September.
    16. Bohringer, Christoph & Lange, Andreas, 2005. "On the design of optimal grandfathering schemes for emission allowances," European Economic Review, Elsevier, vol. 49(8), pages 2041-2055, November.
    17. Golosov, Mikhail & Troshkin, Maxim & Tsyvinski, Aleh & Weinzierl, Matthew, 2013. "Preference heterogeneity and optimal capital income taxation," Journal of Public Economics, Elsevier, vol. 97(C), pages 160-175.
    18. Peter Sørensen, 2007. "The theory of optimal taxation: what is the policy relevance?," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 14(4), pages 383-406, August.
    19. Papageorgiou, Yorgos Y. & Pines, David, 2000. "Externalities, Indivisibility, Nonreplicability, and Agglomeration," Journal of Urban Economics, Elsevier, vol. 48(3), pages 509-535, November.
    20. Auerbach, Alan J. & Hines, James Jr., 2002. "Taxation and economic efficiency," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 3, chapter 21, pages 1347-1421, Elsevier.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:dpr:wpaper:0660. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Librarian (email available below). General contact details of provider: https://edirc.repec.org/data/isosujp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.