The Dutch tax reform 2001 introduced Box system, which is income taxation separated into three types, and tax credits, which deduct a fixed amount of allowance from taxable income and social security contributions. Box 3, the assumed investment yield tax, has been studied, however, the purposes of tax credits have not been considered enough in previous studies. Therefore, the aims of this paper are to reveal how this tax reform was discussed in the political fields and in what taxation it resulted. The former was done by the political process analysis, the later by the institutional analysis, based on the parliamentary recordings and SER’s annual reports. This paper concluded that one of the most important tasks was to lighten the tax burden imposed on workers. This reform tried not only to deal with the problems in the capital income taxation, but also to adjust the tax burden on taxpayers in the Netherlands.

  The 2012 EITC reform in Korea is the biggest reform since EITC began in 2006. The EITC provides financial supports to working poor and low income families and further offers additional work incentive to them. This study analyzes the income redistribution effects of 2012 EITC reform on prime-age male. First, this study compares the redistribution effects of 2012 EITC system with current EITC system using micro simulation and, estimates the change of 2012 EITC reform on working male in the labor supply hours. This study evaluates more accurately the influence of 2012 EITC reform by simulating on labor supply hours. According to the simulation results, increasing effects of labor supply hours in flat and phase-in ranges exceed the decreasing effects of labor supply hours in phase-out. As a result, 2012 EITC reform would reduce poverty. However, the redistribution effects are very small and might be different with the type of family.

  This paper compares the difference in fiscal status between the Russian Fund for Financial Support of the Regions (FFSR) in FY2012 and Japanese local allocation tax grants (LATs). A simulation is made of the FFSR in FY2012 using fiscal data for Japan’s 47 prefectures. The FFSR in FY2012 is characterized thus: (1) the FFSR in FY2012 transfers is proportional to the difference between the standard level and the ratio of the index of the taxable potential of each local government to the index of budget expenditure of each local government; (2) the FFSR in FY2012 is divided into two steps. It is concluded that the Russian system reduces the difference in per capita revenue among local governments. Furthermore, if the index of budget expenditure is changed to per capita (Japanese) standard fiscal needs normalized by the average level among all local governments, the allocation is similar to LATs.

  This paper explains the reasons for the past fluctuations of the size of Japan’s consumption tax revenue relative to GDP in order to clarify the issues which should be taken into account in forecasting the expected size of the consumption tax revenue in the future. First, we consider non-taxable transactions on Japan’s input-output table and calculate the year-by-year size of theoretical tax base corresponding to each GDP component. We find that the variation of the relative size of demand components, such as private consumption, housing investment and government gross fixed capital formation, have had a significant impact on the fluctuation of consumption tax revenue. In addition, we quantify the magnitude of the other factors by checking the difference between the actual revenue and the theoretical revenue, and find that the tax reform of 2003, which changed the exemptions to small and medium-sized businesses, had greatly reduced the magnitude of the impact of the other factors.

  This paper investigates the effects of tax incentives for R&D in Japan. Especially this paper focuses on difference between the effects of tax rate and tax credit. Our empirical results reveal that tax rate has affected the amount of R&D while tax credit hasn’t had such effects. They also show that increasing tax credit in 2003 hasn’t increased R&D expenditure so much. Those results imply that decreasing tax rate could be more effective in order to stimulus corporate R&D activities.

  For population aging, the pension payment as a percentage of Japan’s overall household income is rapidly increasing. Although the increase in public pension compensates for the significant decrease in working income, the individual inhabitant taxation base is continuing to shrink, because Japanese tax system grants generous income deduction to public pension. If public pensions retain their privileged tax treatment, Japan’s overall tax base will continue to erode, and prefectural and municipal governments soon will suffer serious declines in tax revenue. In addition, the continued graying of Japan’s population may widen already-worrisome differences in the fiscal conditions of regional governments.

  This paper uses 12 years prefectural panel data to analyze the impact of population aging on the individual inhabitant taxation base, controlling the impact of recent economic stagnation and tax reforms. After that, necessary tax reforms are discussed.

  We investigate the economic effect of public capital in the three major metropolitan areas (Tokyo, Kansai（including Osaka）, Nagoya) in 1995 and 2005 based on Roback (1982). By using cross-section data in the municipal level of three major metropolitan areas, we can evaluate the change in the municipal allocation of public capital from 1995 to 2005.

  We show that national road, prefectural road, and park have the welfare effect and the productivity effect in all three major metropolitan areas. And we indicate that the allocation of public capital in Tokyo area is efficient. On the other hand, especially in Kansai area, the municipal allocation of public capital is inefficient.