Tax Policy in Aging Japan
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This paper investigates a desirable tax policy for Japan's coming aging society. Because the current Japanese public pension program is operated in a manner similar to a pay-as-you-go scheme, the declining percentage of the working population will have a harmful effect on economic welfare. Simulation results show in a quantitative way that a progressive expenditure tax is ultimately desirable, and that an inheritancetax stimulates capital accumulation followingan expenditure tax. This paper suggests that the Japanese tax system should rely more on an inheritance tax, and that when consideringa tax-combination policy, a combination of a progressive expenditure tax and an inheritance tax may be desirable in terms of efficiency and equity.
- Journal of International Economic Studies = Journal of International Economic Studies
Journal of International Economic Studies = Journal of International Economic Studies (23), 43-58, 2009-03
Institute of Comparative Economic Studies, Hosei University