1998 Fiscal Year Final Research Report Summary
Comparative Study of Tax Harmonization and Tax Coordination in Federal Countries
| Project/Area Number |
08303011
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| Research Category |
Grant-in-Aid for Scientific Research (B)
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| Allocation Type | Single-year Grants |
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| Section | 一般 |
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| Research Field |
Public finance/Monetary economics
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| Research Institution | KYUSHU UNIVERSITY |
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Principal Investigator |
ITO Hirohumi Kyushu Univ., Economics, Professer, 経済学部, 教授 (60047735)
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| Co-Investigator(Kenkyū-buntansha) |
PARK Won Kagoshima Univ., Law and Literature, Associate Professer, 法文学部, 助教授 (60253853)
SERI Yousuke Kurume Univ., Economics, Associate Professer, 経済学部, 助教授 (40248349)
AKAISHI Kouji Nagasaki Univ., Economics, Associate Professer, 経済学部, 助教授 (20192875)
NAKAMURA Yoshihiro Kitakyushu Univ., Economics, Professer, 経済学部, 教授 (20117526)
SAWAI Masaru Narajoshi Univ., Live-environmet, Professer, 生活環境学部, 教授 (30254618)
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| Project Period (FY) |
1996 – 1998
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| Keywords | tax harmonization / horizontal tax coordination / verticaltax coordination / intergovernmental relation / accountability |
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| Research Abstract |
The purpose of this report is to examine tax harmonization and tax coordination. The following points have been found.
1. The manner of vertical tax coordination differs considerably according to the federal countries, In the USA, tax coordination is achieved by deduction of state taxes from federal tax liabilities, in Canada by the federal-provincial tax collection agreements, in Switzerland by the restriction of the federal government s power in the Constitution.
2. The manner of horizontal tax coordination also varies widely. In Switzerland, intercantonal double taxation is avoided by the exemption method. If both federal and state governments can levy their own taxes, the problem of double taxation among federal and state level occurs. This problem can be avoided by tax harmonization. In Germany and Canada, tax harmonization in which the same tax base is adopted by both federal and state level is accompanied by horizontal coordination, that is, a system of revenue-sharing or equalization payments.
3. The examination of tax harmonization and tax coordination teaches us that, in Japan, redistribution of income tax among central and local governments is necessary in order to establish the accountability of local governments and, in such a case, tax harmonization and tax coordination is important in order to achieve efficient fiscal arrangements.
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