Template-type: ReDIF-Paper 1.0

Author-Name: Hiromtsu Ishi

Author-Workplace-Name: Hitotsubashi University

Title: Moving Toward a Dual Income tax in Japan
Abstract: The aim of this paper is to explore the recent move toward a system of dual income tax (DIT) in Japan, tracing back to the development of the individual income tax in the postwar period.  Focus is upon very pragmatic considerations institutionally, rather than abstract theoretical arguments.  In what follows, main issues are divided into four parts. First, as an introductory part, the basic features of Nordic DIT are summarized briefly.  Second, the shift from a comprehensive income tax (CIT) and its aftermath is studied in light of special tax measures for capital income taxation.   Third, an idea of integrating “financial income” into one global system, which was proposed by the Government Tax Commission, is examined as the first step to move toward a DIT in the future.  Lastly, paper is concluded to stress that individual income tax reform toward a DIT seems to be inevitable as a result of trial and error that the Japanese tax system has experienced in the past.
Keywords: Dual Income tax, Japan, comprehensive income tax (CIT), Nordic DIT  
Length: 29 pages
Creation-Date: 2006-12-01
File-URL: http://icepp.gsu.edu/files/2015/03/ispwp0626.pdf
File-Format:application/pdf
Handle: RePEc:ays:ispwps:paper0626