TY - JOUR
T1 - Decomposition of redistributive effects of Japanese personal income tax, 1984–2009
AU - Miyazaki, Takeshi
AU - Kitamura, Yukinobu
PY - 2016/9
Y1 - 2016/9
N2 - This study examines how changes in the rate structure, deductions, and tax credits for personal income tax affect the inequality of posttax income, using micro data on Japanese households. The main contribution is the use of the fixed-income approach to assess the decomposed redistributive effects of the personal income tax. Several insights are obtained. First, the redistributive effects of the Japanese income tax declined during 1984-2009. Second, base effects substantially exceeded rate effects over this period. Third, credit effects greatly decreased the redistributive effect, as Japanese tax credits were proportional to tax liabilities with upper limits.
AB - This study examines how changes in the rate structure, deductions, and tax credits for personal income tax affect the inequality of posttax income, using micro data on Japanese households. The main contribution is the use of the fixed-income approach to assess the decomposed redistributive effects of the personal income tax. Several insights are obtained. First, the redistributive effects of the Japanese income tax declined during 1984-2009. Second, base effects substantially exceeded rate effects over this period. Third, credit effects greatly decreased the redistributive effect, as Japanese tax credits were proportional to tax liabilities with upper limits.
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U2 - 10.1628/001522116X14677232484086
DO - 10.1628/001522116X14677232484086
M3 - Article
AN - SCOPUS:84990922488
VL - 72
SP - 334
EP - 368
JO - FinanzArchiv
JF - FinanzArchiv
SN - 0015-2218
IS - 3
ER -