Effects of deductions on the tax burden reduction and the redistribution of the income and resident taxes

Tax Reforms and Their Effect on Social Inequality

“…Likewise, among the factors that affect inequality are minimum wages, the behavior of markets for both goods and services act on primary income, that is, they are inseparable; Another relevant factor corresponds to the collection mechanisms such as taxes and transfers, since at this point based on the taxable bases for declaration and the progressive increase of the same as an action to increase the cash flow for the state, there is an impact the availability of income in families or homes, compressing the dynamics of purchasing power for them (Ohno et al, 2021;Troiano, 2017).…”

Distributional Effects of Tax Reforms in Japan

“…This paper adds to the literature that studies the distributional effects of tax and social security policies in Japan relying on arithmetic micro-simulation models. 4 For example, Tajika and Furutani (2003) simulated the elimination of the Pension Income Deduction, Takayama and Shiraishi (2010a) studied the introduction of a refundable income tax credit, and Ohno et al (2021) analyzed the deductions in the personal income tax. In terms of the household survey data used in micro-simulation models, most of previous studies relied on either (i) the National Survey of Family…”