Reconstruction of Japanese income taxation system from the perspective of both income redistribution and economic growth

2017 Fiscal Year Final Research Report

• Project/Area Number: 15K03523
• Research Category: Grant-in-Aid for Scientific Research (C)
• Allocation Type: Multi-year Fund
• Section: 一般
• Research Field: Public finance/Public economy
• Research Institution: Dokkyo University
• Principal Investigator: Nomura Hiroyasu 獨協大学, 経済学部, 教授 (90383207)
• Co-Investigator(Kenkyū-buntansha): 栗林 隆 千葉商科大学, 商経学部, 教授 (30306401) ; 山田 直夫 公益財団法人日本証券経済研究所(調査研究部及び大阪研究所), 調査研究部, 研究員(移行) (30638391) ; 望月 正光 関東学院大学, 経済学部, 教授 (40190962) ; 高松 慶裕 静岡大学, 人文社会科学部, 准教授 (90454016)
• Co-Investigator(Renkei-kenkyūsha): INOUE Tomohiro 一般財団法人電力中央研究所, 社会経済研究所, 主任研究員 (80453976)
• Project Period (FY): 2015-04-01 – 2018-03-31
• Keywords: 二元的所得税 / 最適所得税 / 労働所得税 / 資本所得税 / ACE

Outline of Final Research Achievements

We conduct theoretical and empirical studies on the design of Japanese income taxation system that makes it possible to promote both economic growth and income redistribution with setting the Nordic Dual Income Tax, which treats capital income separately from labor income, as a basic role model. We find that it would be desirable to raise the labor income tax rate and progressivity to the extent possible for income redistribution and also to apply the negative participation tax rate on young households with low consumption. In order to promote the investment of companies, particular attention should be paid to the effective tax rate on capital income such as dividend income while an ACE-based tax system, which provides a deductible allowance for corporate equity as well as its debt, would work effectively as a form of corporate taxation.

Free Research Field

財政学