2009 Fiscal Year Final Research Report

Research for Japan's public burden considering the fiscal interdependence between tax and social security system.

Research Project

Project/Area Number	20730201
Research Category	Grant-in-Aid for Young Scientists (B)
Allocation Type	Single-year Grants
Research Field	Public finance/Monetary economics
Research Institution	Hokkaido University
Principal Investigator	KIMURA Shin Hokkaido University, 大学院・公共政策学連携研究部, 特任助教 (50419959)
Project Period (FY)	2008 – 2009
Keywords	財政学 / 年金 / 税制改革 / 基礎年金消費税方式 / 最低保障年金
Research Abstract	It has been discussed whether the basic pension should be fully financed by consumption tax in Japan. The Japanese government estimated the impact on the public pension financing and the tax burden on households. This project inspected the problems of this estimation and showed : (1)both theoretically and econometrically, the assumption of the government's estimation is not necessarily general, (2)the government's estimation neglects additional tax increase effects generated institutionally, (3)the additional tax increase is estimated to be about 2.6~3.5 trillion yen, (4)differences in the tax burden on insureds between pension plans remains even if the additional tax increase is neutralized with the consumption tax reduction or the employment income exemption increase.