2010 Fiscal Year Final Research Report
A Historical Study on the "Avoiding Tax Increase-Oriented" Tax Structure in Japan: On the Basis of the Shoup Recommendation
Project/Area Number |
21730246
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Research Category |
Grant-in-Aid for Young Scientists (B)
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Allocation Type | Single-year Grants |
Research Field |
Public finance/Monetary economics
|
Research Institution | Keio University |
Principal Investigator |
IDE Eisaku Keio University, 経済学部, 准教授 (80337188)
|
Project Period (FY) |
2009 – 2010
|
Keywords | シャウプ勧告 / 財政社会学 / Social Learning / 社会的信頼 |
Research Abstract |
Under pressure from Dodge's retrenchment policy, C. Shoup was forced to propose a tax structure which was progressive and imposed a heavy burden on the middle class. In addition, the Ministry of Finance reduced allocations for the Fiscal Equalization Grant, and later the Local Allocation Tax, to finance an even larger tax cut than proposed by Shoup. These decisions contributed to the tax cut culture after the periods of high economic growth, but economic stagnation during the 1970s prompted new pork barrel spending which added public work expenditures. Unfortunately recent unprecedented national government debt has made this such spending no longer sustainable and strengthened strong public resistance against tax increases ; this accelerates further national debt accumulation.
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Research Products
(6 results)