Economic studies of taxation in Japan: The case of personal income taxes

We argue that tax policy in Japan is on a shaky empirical ground. First, until recently, no serious attempts had been made to estimate labour responses to taxation, especially with respect to prime-age male workers. Second, while there is some stock of empirical analysis on labour supply response of female workers, few studies have appropriately allowed for the budget constraint structure implied by the tax system. Third, as a corollary, there is not a reliable stock of empirical estimates to quantify the frequently employed concepts of “disincentives to work” or “distortion.” Given this state of the literature, we introduce our estimates, and calculate the degree of distortion using the concept of the marginal cost of public funds.     

Tax reform issues in Korea

The relatively simple nature of the tax policy in Korea is changing recently, as widening income gap, unemployment, social expenditures, and decentralization have become important policy issues. In this paper, the tax system in Korea is overviewed, and several important tax reform issues such as economic growth, tax competition, redistribution, tax assignment, and real estate taxes are discussed. The main reform issues are the followings. The tax burden is expected to rise, but the direction of changes in tax mix is not clear since social expenditures can play as important role as direct taxation for redistribution. Taxes related to real estates in Korea are too complicated, and the progressivity is needed to be lessened. The roles of central and local governments with respect to tax policy are not well designed. Redistributive function should be assigned to the central governments, and tax exporting of local governments should be minimized.     

Tax reform: Chasing the elusive dream

The paper provides a bird's-eye view of the long and arduous task of reforming the federal individual income tax. As a starting point for reviewing the major reforms, the authors evaluate Secretary Simon's criteria that underlie his contention that the tax system was badly in need of a thorough overhaul. Principles that should guide tax reforms are spelled out. Conflicts that arise with the application of these principles are highlighted. An examination of reform efforts in light of the principles and criteria set in the Treasury Department's Blue Prints for Tax Reform forms the basis for evaluating reforms enacted over the period 1978–2001. The review suggests that we are partway towards achieving the tax man's dream of equity, efficiency, and simplicity.The task of comprehensive reform is monumental in its dimension and far reaching in itspotential impact on our economic well-being.[William E. Simon, 1977, p. 11]     

Tax system reform in India: Achievements and challenges ahead

Indian tax system has come a long way from the narrow based, complicated and confiscatory to the one that is far more efficient. Over the years, the thrust and direction of reforms have been to improve revenue productivity while minimising distortions. The reform to convert the state level sales tax into VAT this year is a major initiative. The recent focus on tax administration promises rich dividends.Despite reforms since 1991, much remains to be done to make the tax system broad-based, productive and efficient. In corporate tax, excise, customs and sales taxes, revenue concentration on diesel and petrol has high efficiency costs. The personal income tax continues to be narrow based. Reform in the sales tax has only just begun and a lot remain to be done to evolve destination-based retail VAT. The reforms in tax administration promise increased revenues and, hopefully, that will provide the elbow room necessary for calibrating future reforms.     

Tax policy and reform in Asian countries: Thailand''s perspective

This paper gives overviews of Thailand's tax system covering major taxes administered by the central government and the local taxes administered by the local government. Recent tax reform experiences are discussed at length starting from the introduction of value added tax (VAT) replacing the business tax to customs tariff reform. Current issues on taxation are also highlighted ranging from tax base, direct and indirect taxation, decentralization impediments. Furthermore, the government is implementing modern and cutting-edge technology in tax administration, thereby providing effective and efficient e-government services to the Thai people. This paper discusses the Roadmap for Tax Reform that would outline the framework for future direction of taxation in Thailand. Finally, the paper gives important insights on tax issues, and draws important conclusions for the future of tax reform in Thailand.     

The case for selective taxes on goods and services in developing countries

Conventional views about the fairness and economic consequences of selective taxes on goods and services (excises) in relation to sales and income taxes need to be re-examined. Excises can often be remarkably well tailored to the peculiar conditions and objectives of developing countries. Experience shows that excises can be administered effectively. If properly designed, therefore, excise systems may prove more capable of imparting progressivity and inducing efficiency than unsuccessful attempts at seemingly more sophisticated forms of tax technology. Excises can contribute substantially to certainty in taxation, a factor of which the social and economic importance can scarcely be overemphasized.     

日本消费税问题的由来及其改革展望

消费税从提出到实施及其之后的改革一直是日本政治经济中的一个敏感性话题,反映了日本政治、经济及社会背景的深刻变化,直接原因是高居不下的财政赤字及不断攀升的债务负担,根本原因在于长期经济衰退使得政府财源枯竭,同时严重的老龄化又使得社会保障支出面临巨大压力,选举制度下的政党政治斗争也放大了消费税效应,从目前情况看,提高消费税税率似乎是一个必然选择.     

关于如何进行个人所得税改革的思考

笔者从事银行的资金监控和企业税务工作多年，针对我国目前的个人所得税法及个人所得税的征收过程中出现的诸多问题，作了较为深入全面的调查和思考。现将其提出来，以供大家共同探讨，希望我国的个人所得税的改革能得到全新的圆满的解决。     

Age-period-cohort decomposition of social security taxes and benefits in the USA and Japan

Aggregate data of social security taxes and benefits in the USA and Japan, classified by period and by age, are decomposed into age, period, and cohort effects using the Bayesian cohort models which were developed to overcome the identification problem in cohort analysis. Regarding to US results, it is shown that period and cohort effects have negligible impact on US social security taxes and benefits which are measured as the share of household expenditure and income, respectively. Regarding to Japanese results, it is shown that period effects show a moderate trend in social security taxes and that cohort effects indicate small up-and-down movements.      

Tax illusion and savings perception: The case of compulsory loans

Summary Theexplicit specification of a short-run tax illusion effect accompanying compulsory loan levy is introduced, thus enabling its empirical verification and estimation by income group using cross-section data. Consumption-Savings/Savings-composition behaviour and decisions in both the short-run and long term and liquidity/risk-asset preference are dealt with in this context, and three possible forms of the effect are proposed: (a)continuous over, (b)discontinuous over, or (c)discontinuous within income groups, with expected results discussed accordingly. Finally, compulsory loan levy in Israel is discussed and proposed as a valid case for further study.Formerly, Economic Assistant, Economic Planning Authority, State of Israel (1970-71). The views expressed herein do not necessarily reflect those of the author's previous employer.     

Public investment and business cycles: The case of Japan

This paper examines the effect of public investment on macroeconomic fluctuations in Japan by comparing the effects of central and local government investments. Impulse response functions show that central government investments slightly but persistently stimulate industrial production, while local government investments have no positive impact on business cycles. In terms of policy effectiveness, these results suggest that the Japanese government should not employ local public sector investments as a policy instrument for economic stabilization.     

日本商业票据电子化改革分析

随着互联网时代的到来,传统纸质票据已不能满足社会和市场的需求,电子商业票据因其本身具有的优势而成为全球化趋势。日本为了解决资本和货币市场存在的一些问题,将电子商业票据的推行纳入日程,不仅制定了一系列相关法规制度为之提供基础构建,还组建了日本资本市场协议会为之提供服务机制。日本商业票据的发展历程及日本资本市场协议会的做法时我国有很大借鉴意义。     

Health insurance reform and economic growth: Simulation analysis in Japan

This paper evaluates the drastic reforms of Japanese public health insurance initiated in 2006. We employ a computable general equilibrium framework to numerically examine the reforms for an aging Japan in the dynamic context of overlapping generations. Our simulation produced the following results: first, an increase in the co-payment rate, a prominent feature of the 2006 reform, would promote economic growth and welfare by encouraging private saving. Second, the ex-post moral hazard behavior following the increase in co-payment rates, however, reduces economic growth. Third, Japan's trend of increasing the future public health insurance benefits can mainly be explained by its aging population, and increasing the co-payment rate does little to reduce future payments of public health insurance benefits. Fourth, the effect on future economic burdens of reducing medical costs through efficiencies in public health insurance, emphasis on preventive medical care, or technological progress in the medical field is small. Finally, a policy of maintaining public health insurance at a fixed percentage of GDP will require reducing public health insurance benefits, perhaps up to 45% by 2050. Such a policy also reduces economic growth until approximately 2035. Our simulation indicates that the reform does not significantly reduce future public health insurance benefits, but it can enhance economic growth and welfare by encouraging private saving.     

Capital gains tax and individual trading: The case of Japan

Japan implemented a capital gains tax reform and reduced its flat rate in 2003. This study attempts to explain how this has contributed to the recent surge of individual trading, using three different methods of analysis. First, we perform a time-series analysis with the aggregate, market-level data. Second, we use firm-level, by-stock data to conduct a similar time-series analysis, as well as a panel data analysis. Third, we examine the price-change sensitivity of winners’ volume before and after the reform. The results clearly indicate that the tax cut has helped expand individual trading, as the average tax rate negatively correlates significantly with individual trading.     

Tax reform,capital allocation and welfare gains in Norway

Summary This paper analyzes the potential welfare gains to the Norwegian economy of implementing a tax reform that broadens the tax base and lowers tax rates on capital income. For this purpose a dynamic general equilibrium model where agents have perfect foresight is developed. The model is highly aggregate, with only one production sector and one household sector, but it incorporates a very detailed treatment of the taxation of capital income. This includes a two-way classification of capital assets into three ownership classes: corporate, non-corporate and household, and across two types of assets: long-lived and short-lived. This suffices to capture those elements of the Norwegian tax code that give rise to the most important distortions, both intratemporally and intertemporally.I have benefited greatly from detailed comments from Don Fullerton, A. Lans Bovenberg and an anonymous referee. Please direct all correspondence to the author to: Fiscal Affairs Department, International Monetary Fund, 700 19th Street, N.W., Washington, D.C. 20431.     

The estimation of monetary policy reaction function in a data-rich environment: The case of Japan

This paper reports the estimates of a monetary policy reaction function for the Bank of Japan in a data-rich environment. There are two main findings. First, a weak identification problem arises in the estimates under the specifications that some previous works employ, though in a data-rich environment it may be possible to avoid this problem. Second, the evidence from the estimates in a data-rich environment suggests that the Bank of Japan only controlled the inflation forecast, and placed no weight on output stabilization directly over the period from November 1988 through February 2001.     

日本区域一体化发展中的改革与创新经验

区域一体化发展模式的形成往往离不开特定的政治、经济、文化、社会、制度背景。本研究通过对日本区域一体化发展模式的梳理,分析并总结其先进的理念和成功经验(如政府角色的转变、通过地方分权为区域管理创造新的空间、新的公共机构的设置、新制度安排带来的空间组织优化等)。试图为加快中国区域一体化发展进程提供具有参考价值的建议。     

The multiplier-effect of income and consumption taxes

Zusammenfassung Der Multiplikatoreffekt der Einkommen- und Verbrauchsteuern. — Die Abhandlung stellt die Wirkungen auf gew?hnliche finanzpolitische Multiplikatoren bei Aufgliederung der Volkswirtschaft in Sektoren, bei Annahme variabler Faktorpreise und unterschiedlicher marginaler Konsumneigungen von Lohnbeziehern und Empf?ngern von Residualeinkommen sowie bei Erhebung nichtproportionaler Steuern dar. Es wird gezeigt, da\ die Elemente der regelm?\igen Multiplikatoren bei Variierung dieser Annahmen durch gewogene Durchschnitte der gleichen Elemente ersetzt werden. Diese Werte sind manchmal marginale und manchmal Durchschnittsgewichte. Die Summe dieser Gewichte ist nicht not-wendigerweise gleich eins. Ferner implizieren die ?nderungen in den Annahmen die Verwendung gewisser Berichtigungsglieder in den Formeln. Es werden die gew?hnlichen Multiplikatoren bei ?nderungen der Einkommen- und Verbrauchsteuers?tze in Schaubildern dargestellt und einige Probleme der Multiplikatoren eines ausgeglichenen Budgets diskutiert. Zum Schlu\ werden einige Aspekte einer dynamischen Darstellung er?rtert.

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Résumé L’effet multiplicateur des imp?ts sur le revenu et la consommation. — L’article décrit les effets sur les multiplicateurs usuels de politique financière, quand on prend l’économie par secteurs, quand on suppose des prix de facteurs variables et des penchants marginaux de consommation différents pour les salariés et pour ceux qui ont un revenu restant, et pour le cas d’imp?ts non-proportionnels. Il est démontré qu’en variant ces suppositions, les éléments des multiplicateurs réguliers sont remplacés par des moyennes pondérées des mêmes éléments. Ces valeurs sont ou des poids marginaux, ou bien des poids moyens. Le total de ces poids n’égale pas nécessairement i. Si l’on change les suppositions, il faut introduire dans les formules certains ajustements. Sont donnés des diagrammes des multiplicateurs usuels sous une fluctuation des taux d’imp?t sur le revenu et la consommation, et sont étudiés certains problèmes des multiplicateurs d’un budget équilibré. Finalement, quelques aspects d’une présentation dynamique sont discutés.

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Resumen El efecto multiplicador de los impuestos sobre la renta y sobre el gasto de consumo. — El presente estudio ofrece una exposici?n de los efectos de los multiplicadores fiscales corrientes, teniendo en cuenta la división de la economía en sectores y suponiendo que los precios de los factores de producción son variables, que los asalariados tienen otra propension marginal al consumo que los receptores de ingresos residuales, y que el estado recauda impuestos no-proporcionales. Se demuestra por un lado, que los elementos de los multiplicadores corrientes quedan substitufdos por promedios ponderados de los mismos elementos, si se alteran los supuestos. Estos valores a veces son ponderaciones marginales, a veces ponderaciones por término medio. La suma de estas ponderaciones no es necesariamente igual a la unidad. Además se demuestra, que al variar los supuestos hay que variar tambien las formulas en una manera determinada. El trabajo contiene varios diagramas que expresan la cuantía de los multiplicadores corrientes al variar las tasas de los impuestos sobre la renta y sobre el consumo. Finalmente, se discuten varios problemas del multiplicador del presupuesto equilibrado, asf como algunos aspectos de una presentaci?n dinámica.

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Riassunto L’effetto del moltiplicatore delle imposte sul reddito e di quelle di consumo. — Il saggio espone gli effetti su usuali moltiplicatori politico finanziari nella suddivisione dell’economia in settori, nell’accettazione di prezzi variabili dei fattori e di differenti tendenze marginali dei consumi di salariati e beneficiari di reddito residuale come anche nella riscossione di imposte non proporzionali. Viene mostrato che gli elementi dei moltiplicatori regolari sono sostituiti, nella variazione di queste accettazioni, da medie ponderate degli stessi elementi. Questi valori a volte sono marginali e a volte pesi medi. La somma di questi pesi non è necessariamente uguale ad uno. Inoltre i mutamenti nelle accettazioni implicano l’impiego di termini di rettifica nelle formule. Gli usuali moltiplicatori sono rappresentati in grafici nei mutamenti dei tassi dell’imposta sul reddito e dell’imposta di consumo e sono discussi alcuni problemi dei moltiplicatori di un bilancio preventivo in pareggio. Alla fine sono dibattuti alcuni aspetti di una rappresentazione dinamica.

     

Export taxes and income distribution: The Philippines coconut levy

Export Taxes and Income Distribution: The Philippines Coconut Levy. — A large, empirically based general equilibrium model of the Philippine economy is used to analyze the implications of a tax on coconut oil exports. The analysis shows how general equilibrium models can be used to derive optimal tax rates and to show the detailed relationship between the rates at which these taxes are applied and their economic effects. The analysis explores in particular the effects such taxes have on economic welfare and on income distribution within the country. The distributional effects of this export tax are shown to be highly regressive, revealing more clearly the policy trade-offs such taxes involve.