Abstract
The Japanese method of capital gains taxation, in which the tax on stocks is levied according to the sale price rather than the realized capital gains, has not been used since 2003. This paper analyzes the effects of reform from the Japanese method to the conventional method of capital gains taxation on capital accumulation and social welfare. Additionally, this paper analyzes the effects of the reform from conventional capital gains taxation to other capital income taxes.
JEL Classification: G32, G35, H22, H24, H25
