1995 Fiscal Year Final Research Report Summary
Integration of the Individual and Corporate Tax Systems in Japan
| Project/Area Number |
06630076
|
|---|
| Research Category |
Grant-in-Aid for General Scientific Research (C)
|
| Allocation Type | Single-year Grants |
|---|
| Research Field |
Public finance/Monetary economics
|
|---|
| Research Institution | Waseda University |
|---|
Principal Investigator |
BABA Yoshihisa Waseda University, School of Political Science and Economics, Prof., 政経学部, 教授 (80148022)
|
|---|
| Project Period (FY) |
1994 – 1995
|
| Keywords | CBIT / ACBIT / Traditional Integration Method / Corporate Income Tax / Comprehensive Income Tax / Neutrality of Taxation |
|---|
| Research Abstract |
1. Comprehensive business income tax (CBIT) prototype has three merits as Japanese integration system. (1) It can attain the neutrality of taxation by common rule to taxable and tax-exempt investors. In this point CBIT is superior to the traditional methods-i. e, shareholder allocation, imputation credit, dividend deduction prototype. (2) It is very symple system. Because the CBIT type subjects interest and equty income at the entity level, to a single level of Japanese tax equal to the top individual rate, regadless of the investor's actual marginal tax rate. It is significant for our integration system because of cross sharing and main bank in Japanese financial system. (3) It taxs the tax-exemt investors' with taxable capacity. This is important because the tax-exemt entity, like pension funds, will increase their investments in the near future.
2. CBIT has three demerits. (1) If we don't abolish interest income tax at investors' level, we can't get the neutral tax system. As a feasible alternative We propose ammended CBIT (ACBIT) which continue interest income tax at investors' level and deduction for interest at entity level. (2) It is not fair that CBIT subjects interest and equty income to the top individual rate. (3) CBIT leads to accept the source principle in the international setting.
3. So further work we need is to investigate (1) what is the optimal tax rate of CBIT or ACBIT taking account thetax-equity, (2) which is best CBIT,ACBIT or the traditional methods in the international setting.
|
Research Products
(6 results)
