Redistributive Effects on Income Tax Rates and Tax Base 1984-2009: Evidence from Japanese Tax Reforms

41 Pages Posted: 20 Nov 2014

See all articles by Takeshi Miyazaki

Takeshi Miyazaki

Kyushu University, School of Economics

Yukinobu Kitamura

Rissho University, Data Science Department; Hitotsubashi University - Institute of Economic Research

Date Written: June 20, 2014

Abstract

The primary objective of this paper is to examine how, and to what extent, changes in income tax rates and income tax deductions affect income inequality from a longitudinal perspective, by using microdata of Japanese individuals and households. The findings of this paper could shed light on the effects of tax rates and tax deductions on tax progressivity. First, redistributive effects of Japanese income tax reforms declined for the period from 1984-2009. Second, the tax reforms with reductions in tax rates and in tax base gave rise to greater redistributive effects of income tax rates and smaller redistributive effects of tax base. Third, any progressivity measure and approach to determine pretax income showed the same trends, with respect to the redistributive effects of tax reforms.

Keywords: Income taxation, redistribution, tax deduction, tax rate

JEL Classification: D3, H2, H24

Suggested Citation

Miyazaki, Takeshi and Kitamura, Yukinobu, Redistributive Effects on Income Tax Rates and Tax Base 1984-2009: Evidence from Japanese Tax Reforms (June 20, 2014). Available at SSRN: https://ssrn.com/abstract=2528393 or http://dx.doi.org/10.2139/ssrn.2528393

Takeshi Miyazaki

Kyushu University, School of Economics ( email )

744 Motokoka Nishi-ku
Fukuoka, 8190395
Japan

Yukinobu Kitamura (Contact Author)

Rissho University, Data Science Department ( email )

Magechi 1700
Kumagaya, Saitama 3600194
Japan
+81485391426 (Phone)
+81485362522 (Fax)

Hitotsubashi University - Institute of Economic Research ( email )

2-1 Naka Kunitachi-shi
Tokyo 186-8306
Japan
81425808394 (Phone)
81425808394 (Fax)

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