Taxation
Fiscal policyOne of the things
revenue Tax revenue Tax law duty free Tax credit with benefits Deduction Tax reduction Tax reform Tax competition Double taxation No taxation without representative
Economy 　Tax return 　Raffer curve Optimal taxation theory 　Optimal capital income tax
Tax collection National Tax Agency Revenue stamp Taxable income Tax investigation
Tax avoidance tax evasion Tax haven smuggling Black market
distributed tax rate Uniform Progressive
Head directly to Stubhub to view more events and check pricing on tickets Indirect Subordinate amount Ad valorem article carbon 消费 Environment article gasoline Georgeism Gift income inheritance Land price Salary Pigou Fixed asset Sales Wrongdoing stamp Added value Corporation Negative income Uniform rich
Financial transaction tax Tobin tax Tax treaty Permanent facility Transfer pricing tax system
Trade Customs Tariff 輸入 Output Free trade Bonded area Trade treaty
Religious Church tax Tithe tax Jizya Harrage Khums Zakat
By country BVI Japan

income taxWhat is (Shotoku)?Tax burdenThe source ofincome,消费as well as the AssetWill be levied on income when classified astaxThat. Income tax can be classified into a broad sense of income tax and a narrow sense of income tax.

1. In a broad sense, in addition to narrow income tax,National tax(Central tax)CorporationLevied on income for each business yearCorporate tax,Local taxInResident tax,Business taxAnd so on.
2. In a narrow sense,IndividualIs taxed ontax(National tax)personal income taxSay. As a substantive law concerning this tax, in JapanIncome tax law(Law No. 40, March 3, 31).

Here, we mainly describe the personal income tax in 2. above.

personal income tax

Income taxProgressive tax rateIt is said that it is an effective tax to maintain the vertical fairness of the tax by mixing and various human deductions.

現代 のJapanAnd in AmericaNational taxIt is the core tax that accounts for the highest proportion of the tax items.As an income tax collection methodFinal returnAnd the familiar tax return systemTax withholdingThere is a method. The latter accounts for a higher proportion of tax revenue.

Merit

• Increasing your interest in taxes by filingPoliticsInterest in^[1].
• Progressive taxationWith the introduction of a large amount of tax can be collected from the affluent and the income will be redistributed.^[2].
• Empirical evidence shows that the introduction of progressive taxes does not restrain the labor supply of high-income earners^[3](It is rather low-income people who are more likely to lose their labor supply when high income taxes are imposed).

Demerit

• When introducing progressive taxation, the system and tax calculation are complicated^[2].
• The introduction of progressive taxation discourages middle- and high-income earners from working.LiberalIt is assumedFriedrich Hayek,Milton FriedmanIt is,incomeIs to be paid according to the degree of contribution, and income redistribution policy by progressive taxation is not allowed. However, on the other hand, it consistently shows that the poverty issue should not be neglected.^[4].
• Tax saving-tax evasionIs easy to do. Income capture rate varies depending on work style (Croyon) Is not necessarily fair and equal^[5].
• It has been pointed out that it is unclear how income tax actually affects work motivation.^[2].

Income concept

The concept of income is an argument about what income is. Since the introduction of the income tax, it has shown various developments.

There are several ways to think of income that is subject to income tax, as described below. Today, of the threeInclusive income conceptAre dominant, while in European countriesRestrictive income conceptThe idea ofGermany,FranceIn that case, the gain on the transfer of shares is exempt from tax. In Northern European countries, focusing mainly on the inefficiency of the concept of comprehensive income, investment income and labor income are separated and the former is taxed proportionally and the latter isProgressive tax rateApplyDual income taxHas been adopted.

Restrictive income concept

The idea is that taxable income is limited to that obtained from repetitive activities, and that accidental or temporary income is not taxed. One of the so-called acquisition-type income concepts.

Industrial revolutionSince then, the independent movement of capital (Capital cycle) As a resultwage,profit,interest,dividend,RentAs a result, continuous and recurring profits have come to be produced. These were reliable and stable tax sources, and they were easy to grasp, so they encouraged the establishment of income tax. Based on this background, the theory that only income obtained from activities that repeat and focus on sources that generate profits (Income source theory) Is born. This income source theory is based on the theory of national income from the 19th century to the beginning of the 20th century.Germany(German Empire) Was revolved around.

Income tax based on the concept of restricted income is classified according to the source of income, and different tax rates and amounts are levied on each income.Classification income taxA type of tax that calculates net income by the source of income (such as United Kingdom) and sums them upComprehensive income tax(Prussia and pre-war Japan that referred to it).

Consumable income concept

The idea is that taxable income is the portion of income that is profitable from consumption. Income is measured by the total amount of a person's consumption over a period of time. While excluding savings from income, consumption by borrowing is also included in income.John Stuart Mill,Irving FisherIt is based on the theory of, and has a certain theoretical usefulness, such as being advocated by Fischer and Kaldor and still having strong support among economists.

The income tax (consumption-type/expense-type income tax, expenditure tax) that adopts the concept of consumption-type income tax isIndia,Ceylon(CurrentSri Lanka), but it did not take root. This is due to inequity caused by exclusion of savings, difficulty in grasping consumption/determining aristocrats, and deviation from common sense.

However, since the expenditure tax is similar in content to the general consumption tax, it can be seen that it is replaced by the value-added tax as a general income tax.

Inclusive income concept

Advocated by German financial scholar Georg von SchanzNet asset valuation theoryBeginning with the concept developed by American Hague (Robert M. Haig) and Simons (Herry C. Simons).Shantz-Haig-Simons concept, Taking the initials of Hayg and Simon'sHS conceptAlso known as^[6][7].. The economic gain that increases the tax-bearing power is all the increase in net assets, which is the idea that it is income, and is expressed by the formula "income = accumulation + consumption". This is one of the so-called acquisition-type income concepts. Temporary and accidental gains also become income,inheritanceIs also regarded as income (inheritance taxreference).

The concept of comprehensive income conforms to the demand for fair burden (principle of burden according to tax burden),Welfare stateSince it was an income concept that was suitable for, it was widely supported. Comprehensive progressive income tax, which adopts the concept of comprehensive income, makes it possible to apply and tax all income with one progressive tax rate table, and has a national finance procurement function.Redistribution function,Economic adjustment function・The resource redistribution function can be enhanced.^[8].

On the other hand, there are problems, and in reality, unrealized gains and imputed income should be subject to taxation, but it is difficult to capture or evaluate them and in many cases they are not subject to taxation. Is one of the gains of realizationCapital gainWill not be taxed if not realized^[7].. Also, in the United States during the economic stagnation of the 1970s, the concept of comprehensive income tax is clear in theory, but in the actual grasp of taxation, the ambiguity of the concept cannot be dispelled and it is difficult for tax authorities to grasp income. Yes, it was criticized for its limitations. For example, it was extremely difficult to grasp income in the underground economy, and the sense of unfairness in income taxation spread in American society. Since the 1980s, the tax rate will be uniform and the tax procedure will be simplified and clarified.Flat taxThe debate about the tax bill has increased^[9].

Western income tax

• UK income tax includes income tax and corporate tax, which are national taxes imposed by the central government.^[10].
• Income taxation in the Netherlands includes income tax, wage tax and corporation tax, which are national taxes levied by the central government.^[10].
• Sweden's income tax includes national and corporate income tax and local income tax.^[10].

History

• 1799 - United Kingdomso,Napoleonic WarProportional tax rate of 10% on income for raising warfare. After that, repeated abolition introduction,1842Fixed on.
• 1840 - SwitzerlandIntroduction
• 1851 - Prussia (Germany)Introduction.German EmpireAfter establishment1891Has undergone a major revision to become a model of the modern world income tax.
• 1861 - AmericaIntroduction　Civil WarWarfare procurement,Violation of the constitutionIt was abolished the following year,1913Constitutional amendment (16th Amendment to the United States Constitution) Introduced in earnest.
• 1864 - ItalyIntroduction
• 1976 --It was decided to introduce an income tax prepayment system in Italy, where national finances are tight.Tax withholdingA system that requires managers who do not receive income tax to pay income tax by March of the following year, and then pays 3% of the amount paid in March by September in advance.^[11].
• 1981 - ReaganBefore the administration, the maximum income tax rate was 70%, but it was gradually reduced from the Reagan administration to 2018% as of 28.

Japanese income tax

Japan's income tax is the taxable standard of total income,Retirement incomeAmount of money,Forestry incomeThere are three amounts. This is based on comprehensive income tax, but realizes separate income tax on retirement income and forest income.

Burden ratio by income

Nihon Keizai Shimbun reporterYoichi TakitaAccording to the report, as of 2020, the percentage of taxpayers with an individual income tax rate of 0% (income tax exemption for welfare recipients, etc.) to 10% (annual income of 330 million yen or less)About 81%And most people don't pay.Conversely, about 10% of people have an individual income tax rate of over 330% (annual income of over 20 million yen) to 695% (annual income of 15 million yen or less), and about 20% of people have an individual income tax of over 695% (annual income of 4 million yen or more). Is^[13].

Taxable person

• Individual
  • Residents (excluding non-permanent residents)
  • Non-permanent resident
  • Non-resident
• Corporation
  • Domestic corporation
  • Foreign corporation
• Corporate body without personality,Foundation

income

Each of the following 10 types of income has its own calculation method.Therefore, the result of the calculation method is the amount of income.Hereinafter, the Income Tax Act will be referred to as "law".

• Interest income(Law Article 23)
• Dividend income(Law Article 24)
• Income from real estate(Law Article 26)
• Business income(Law Article 27)
• Employment income(Law Article 28)
• Retirement income(Law Article 30)
• Forestry income(Law Article 32)
• Transfer income(Law Article 33)
• Temporary income(Law Article 34)
• Other income(Law Article 35)

Among these, interest income, dividend income and real estate income are asset-based income, and salary income and retirement income are labor-based income. Business income and forest income are said to be a combination of asset income and labor income. Both wealth-based income and labor-based income fall under homeostasis. In addition, transfer income and temporary income correspond to temporary income. Miscellaneous income refers to income that does not fall under any of these nine types of income.

Deduction

Income tax deductions are divided into the following forms.

• Classification by what can be drawn
  • Deductions (US): What can be deducted from the amount of income
  • Tax credits (US: Tax Credits): Tax credits that can be deducted by a certain amount from the tax amount calculated by multiplying the taxable income amount by the tax rate
• Classification by nature
  • Human deduction: Human factors (spouse,SupportCan be deducted by
  • Physical deduction: Other than personal deduction

The types of deductions are mainly classified into income deductions and tax deductions (for convenience,Resident taxAbout)).

• Income deduction
  • Casualty loss deduction
  • Medical expenses deduction
  • Social insurance premium deduction
  • Credit deduction for small business mutual aid
  • Life insurance deduction
  • Earthquake insurance premium deduction
  • Donation deduction(Income tax only)
  • Disability deduction
  • Widow deduction/single parent deduction(Widows deduction is abolished)
  • Working student deduction
  • Spouse exemption/ spouse special exemption
  • Exemption for dependents
  • Basic deduction
• Tax credit
  • Dividend deduction
  • Special deduction housing loans
  • No.1210 Acquisition of my home and tax credit(Income tax only)
  • Special deduction for donations from political parties(Donation tax credit,Furusato tax payment）
  • Foreign tax credit
  • Adjustment deduction(Residential tax only)
• Other deductions
  • Blue tax return special deduction
  • Salary income deduction (income amount adjustment deduction),Retirement income deduction
  • Net loss carry forward deduction,Deduction of miscellaneous losses
  • No.3302 3,000 million yen special deduction for my home

tax rate

For example, when the income amount is 700 million yen, the required tax amount is as follows.

　700 million yen (taxable income amount) x 0.23 (tax rate) --63 yen (quick deduction amount) = 6,000 yen (income tax)　

　In addition, a special reconstruction income tax of 20,400 yen (≈ 97 yen x 4,000%) will be added.

Separate taxable income

Separate taxable incomeIf there is, the tax rate will be calculated by applying the following tax rates to the separated taxable income instead of adding them up to the total taxable income^[15].

• (Amount of taxable retirement income) × Above tax rate (resident tax is taxed separately this year)
• (Taxable forest income amount x 1/5) x Above tax rate x 5 (Resident tax is not adopted by the 5 minutes 5th power method)
• Tax Special Measures ActSeparate taxation　
  • (Amount of taxable short-term capital gains) x 30.63% (resident tax 9%)
  • (Amount of taxable long-term capital gains) x 15.315% (resident tax 5%)
  • (Amount of taxable capital gains, etc. related to listed stocks, etc.) x 15.315% (resident tax 5%)
  • (Amount of taxable capital gains on general stocks, etc.) x 15.315% (resident tax 5%)
  • (Amount of taxable dividend income, etc. related to listed stocks, etc.) x 15.315% (resident tax 5%)
  • (Amount of taxable miscellaneous income related to futures trading) x 15.315% (resident tax 5%)

a formula

Income tax adopts a comprehensive taxation system, which calculates income tax by totaling various annual income amounts and is calculated as follows.^[16].

(Business income) + (Real estate income) + (Interest income) + (Dividend income) + (Salary income) + (Miscellaneous income) = Ordinary income

(Ordinary income) + (Short-term capital gains) + (Long-term capital gains + Temporary income) x 1/2 =　Total income amount

　とTaxation standardAfter calculating, apply the income deduction.

(Total income amount)-(Income deduction amount) = Total taxable income

　After calculating, of income taxProgressive tax ratemultiply.

(Taxable gross income amount) x tax rate-(tax deduction amount) + (Special reconstruction tax)-(Withholding tax amount) = Tax return

　The special reconstruction tax amount will be levied from 2013 (25) to 2037 (Reiwa 19).Tax rate is 2.1%^[17].

(Declared tax amount)-(Planned tax amount) = Income tax amount paid

History

Introduced in 1887 (Meiji 20)

The initial income tax was levied on persons with annual income of 300 yen or more. However, it is not the individual tax, but the total household tax,HeadWas the taxpayer.PrussiaWith reference to the system of, the amount of income is divided into five levels, with a minimum tax rate of 5% (income of 1 yen or more) to a maximum of 300% (3 yen or more)Progressive taxationAdopted the method^[18].. It is, so to speak, that income tax is paid because the tax is limited only to the owner who is the head of a household with an income of 300 yen or more per year.Status symbolBecomes "Wealth tax, Or "Honor taxThere is also a theory that it was called by another name. It should be noted that most of the general population are not subject to income tax, and the new tax is targeted to 1.5 people, which is 12% of the total number of households at that time (the total number of households),Tax paymentWas about 0.8% of national tax revenue.

The motivation for introducing this new tax isclearAgainstNavyWas urgently strengthened and maintainedland tax,Liquor taxHow the tax burden should be depending on such thingsFreedom Civil Rights MovementCriticized by the rebels,Imperial Japanese ConstitutionWas scheduled to be installed byImperial Assembly OfHouse of RepresentativesDepends on the amount paidRestricted electionsBecause of the introduction of non-large-scale landowners (taxpayer of land tax)CapitalistIt is also cited as a way to improve the environment for guaranteeing the right to vote and allowing political participation. Three years later1890Japan's first held in (Meiji 23)National electionIs1th House of Representatives general electionIn, the voting right was granted to men aged 25 and over who paid the national tax of 15 yen or more directly.

Revised in 1899 (Meiji 32)

The income is divided into three types, the first type is corporate income, the second type is public bond interest income, and the third type is personal income of 3 yen or more.

Revised in 1940 (Showa 15)

Corporate tax lawWith the enactment of, the conventional type 1 was separated from income taxCorporate taxBecame. In addition, it will be a double taxation of classified income tax and comprehensive income tax.In the former, different tax rates will be applied according to income type and a withholding system for working income will be introduced. Applied a high degree progressive tax.

Revised in 1947 (Showa 22)

Unification of income tax by introducing tax filing (Total income tax return tax payment system) Is achieved. In addition, the maximum tax rate was set at 75% in the subsequent revision, but it was raised to 85% to impose a heavy burden on inflation gainers.

Revision of 1950 and 1953 (impact of Shaup's recommendation)

1949(Showa 24)Shoup RecommendationAs such, a high income tax rate has a negative effect on work motivation, and as a supplementary tax to reduce the maximum income tax rate and to compensate for it.Wealth taxRecommended to introduce. As a result,1950With the revision of (Showa 25), the maximum income tax rate was suppressed to 55%, and at the same time, the wealth tax was introduced at the progressive tax rate. However, the wealth tax did not settle in Japan, and three years later1953It was abolished in (Showa 28), and the maximum income tax rate was returned to 65% instead.

Changes in tax revenue

footnote

1. ^ Yasuo Tanaka. "Again "Japan's consumption tax system is a defective tax system"". Daily Gendai Nippon Kaikoku. New Party Japan. 2010/8/8Browse.
2. ^ ^{a b c} Takashi Kuribayashi, 2009, "Desirable tax on personal income, "CUC View & Vision" No. 27,Chiba University of Commerce,ISSN 1342 – 0542
3. ^ Tatsuo Hatta"Microeconomics II Efficiency Improvement and Disparity Correction"Toyo Keizai Inc.Progressive Economics Series, ISBN: 978-4-492-81300-3, p468
4. ^ September 2010 Poverty debate in Japan: Current status and perspective Toshihiko Yamagami
5. ^ Sanwa Research Institute, "The Japanese Economy in 30 Words", Nikkei Business Newspaper, Nikkei Business Bunko, 2000, p.204.
6. ^ Setsuo Taniguchi, "Basic Lecture on Taxes," 2nd Edition, pp. 168-170
7. ^ ^{a b} [1]
8. ^ Taniguchi 170 pages
9. ^ Nobuyoshi Chihara "Problems of tax reform in the United States -Focusing on flat tax-" Decassion Paper December 2003 Archived August 2011, 5, at the Wayback Machine.
10. ^ ^{a b c} Tax system of each country Japan City Center, Viewed May 2018, 4.
11. ^ Prepaid income tax in Italy Price allowance and rework "Asahi Shimbun" November 1976, 51, morning edition, 11th edition, 12th page
12. ^ Revenue Statistics 2016 (Report). OECD. (2016). P. 103. two:10.1787 / rev_stats-2016-4-en-fr. 
13. ^ "[https://mobile.twitter.com/yoichitakita/status/1442082147318177795 Yoichi Takita (Nikkei) @yoichitakita Nihon Keizai Shimbun editorial board, TV TOKYO World Business Satellite (WBS) commentary caster] ”(Japanese). Twitter. 2021/9/26Browse.
14. ^ No.2260 Income tax rate｜Income tax｜National Tax Agency
15. ^ NO.2240 Separate tax return system (National Tax Agency)
16. ^ No.2220 comprehensive taxation systemNational Tax Agency
17. ^ Overview of Special Reconstruction Income Tax for Individuals | National Tax Agency
18. ^ "Founding Income Tax Law Overview". National Tax Agency (September 1998, 6). 2011/8/12Browse.
19. ^ List of tax and stamp revenue settlement amounts Ministry of Finance

Related item

• Japanese tax
• Final return
• Tax withholding
• Year-end adjustment
• Income tax law
• High taxpayer announcement system
• Croyon
• Wealth tax
• Progressive taxation
• Direct tax

外部 リンク

• How income tax works -National Tax Agency
• Income tax rate -National Tax Agency
• Let's understand how income tax works! --Financial Public Relations Central Committee