Effect of income-increasing deduction in personal income tax on the burden reduction and income redistribution: Evidence from Japan

IF 1.3 4区经济学 Q3 ECONOMICS

Japan and the World Economy Pub Date : 2024-12-27 DOI:10.1016/j.japwor.2024.101296

Taro Ohno , Tomotsugu Imahori , Daizo Kojima

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引用次数: 0

Abstract

Deduction system is an important element for fulfilling the purposes of the personal income taxation. Designing an ideal system of deductions requires understanding the burden reduction effect and its impact on income redistribution due to taxes. In this study, we use Japanese household microdata (1994–2019) to empirically evaluate the burden reduction and redistributive effects of income-increasing deductions on personal income tax. In addition, we separate the changes in the redistribution effect of the deductions into system and non-system reforms. The higher the income bracket, the more effective the deductions in reducing the tax burden due to the impact of the income-increasing part of the deductions. The burden reduction effect of deductions is found to have declined over the sample period of 25 years, mainly due to the impact of system reforms. Moreover, Unlike the other parts that enhance the redistributive effects, the income-increasing part of deductions reduces the redistributive effects.

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个人所得税增税扣除对减负和收入再分配的影响：来自日本的证据

扣除制度是实现个人所得税征收目的的重要组成部分。设计一个理想的扣除制度，需要了解负担减轻效果及其对税收收入再分配的影响。本研究使用日本家庭微观数据（1994-2019年），实证评估了增收抵扣对个人所得税的减负和再分配效应。此外，我们将扣除的再分配效果的变化分为制度改革和非制度改革。收入等级越高，由于收入增加部分的影响，减少税负的效果越好。在25年的样本期内，扣除的减负效果有所下降，这主要是由于制度改革的影响。此外，与其他提高再分配效应的部分不同，扣除的收入增加部分降低了再分配效应。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Japan and the World Economy ECONOMICS-

CiteScore

2.60

自引率

0.00%

发文量

审稿时长

46 days

期刊介绍： The increase in Japan share of international trade and financial transactions has had a major impact on the world economy in general and on the U.S. economy in particular. The new economic interdependence between Japan and its trading partners created a variety of problems and so raised many issues that require further study. Japan and the World Economy will publish original research in economics, finance, managerial sciences, and marketing that express these concerns.