{
  "title": "Distributional Effects of Tax Reforms in Japan: Micro-simulation Approach",
  "publication": "IMF Working Papers, July 22, 2022",
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  "summary": "This paper conducts micro-simulations to study the distributional effects of several tax measures in Japan, considering households’ heterogeneity in terms of both income and wealth.",
  "sections": [
    {
      "heading": "Overview and objective",
      "content": "- Author: Takuma Hisanaga\n- Date: July 22, 2022\n- Scope: Micro-simulations to study the distributional effects of several tax measures in Japan, accounting for households’ heterogeneity in terms of both income and wealth.\n- Publication: IMF Working Papers, Working Paper No. 2022/150, Issue: 150, Volume: 2022, Pages: 35, DOI: https://doi.org/10.5089/9798400214097.001"
    },
    {
      "heading": "Key findings (simulation results)",
      "content": "- Increasing the consumption tax rate and strengthening the recurrent tax on immovable property would weigh more heavily on low-income households with large wealth than on those of comparable incomes with small wealth.\n- Introduction of a consumption tax credit would be effective in containing a rise in tax burden of low-income households."
    },
    {
      "heading": "Policy implications and recommendations",
      "content": "- Consider pairing consumption tax rate increases with targeted measures (for example, a consumption tax credit) to protect low-income households.\n- Account for household heterogeneity in both income and wealth when designing tax reforms, as similar-income households can face different burdens depending on wealth holdings.\n- Strengthening recurrent property taxation needs careful assessment of distributional impacts, particularly on low-income but asset-rich households."
    },
    {
      "heading": "Subjects and analytical focus",
      "content": "- Subjects: Consumption taxes, Income, National accounts, Personal income tax, Tax allowances, Tax incidence, Tax policy, Taxes\n- Keywords highlight focal elements of the analysis: capital income tax tax rate, consumption tax credit, Consumption taxes, employment income deduction, Income, income decile, Inequality, Japan, Micro-simulation, pension income deduction, Personal income tax, reform option, resident tax, Tax allowances, Tax incidence, Tax Policy\n\nTakuma Hisanaga. \"Distributional Effects of Tax Reforms in Japan: Micro-simulation Approach\", IMF Working Papers 2022, 150 (2022), July 22, 2022, DOI: https://doi.org/10.5089/9798400214097.001.\n\n---\n\n Content in this bundle\n\n- Working Paper\n  - Working Paper (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Working Paper (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2022/07/22/distributional-effects-of-tax-reforms-in-japan-521199"
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    "Authors: Takuma Hisanaga",
    "Published: July 22, 2022",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9798400214097.001",
    "Author: Takuma Hisanaga",
    "Date: July 22, 2022",
    "Scope: Micro-simulations to study the distributional effects of several tax measures in Japan, accounting for households’ heterogeneity in terms of both income and wealth.",
    "Publication: IMF Working Papers, Working Paper No. 2022/150, Issue: 150, Volume: 2022, Pages: 35, DOI: https://doi.org/10.5089/9798400214097.001",
    "Increasing the consumption tax rate and strengthening the recurrent tax on immovable property would weigh more heavily on low-income households with large wealth than on those of comparable incomes with small wealth.",
    "Introduction of a consumption tax credit would be effective in containing a rise in tax burden of low-income households.",
    "Consider pairing consumption tax rate increases with targeted measures (for example, a consumption tax credit) to protect low-income households.",
    "Account for household heterogeneity in both income and wealth when designing tax reforms, as similar-income households can face different burdens depending on wealth holdings.",
    "Strengthening recurrent property taxation needs careful assessment of distributional impacts, particularly on low-income but asset-rich households.",
    "Subjects: Consumption taxes, Income, National accounts, Personal income tax, Tax allowances, Tax incidence, Tax policy, Taxes",
    "Keywords highlight focal elements of the analysis: capital income tax tax rate, consumption tax credit, Consumption taxes, employment income deduction, Income, income decile, Inequality, Japan, Micro-simulation, pension income deduction, Personal income tax, reform option, resident tax, Tax allowances, Tax incidence, Tax Policy",
    "**Working Paper**"
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