IDEAS home Printed from https://ideas.repec.org/a/bpj/conjap/v26y2014i1p125-149n5.html
   My bibliography  Save this article

The end of salaryman tax reduction: Japan’s tax policy and its social background

Author

Listed:
  • Toyofuku Miki

    (University of Tokyo)

Abstract

Personal income tax reductions can be considered popular policies to attract volatile voters. Nevertheless, after a series of tax cuts from the rapid growth period until the 1990s, the governing Liberal Democratic Party (LDP) refrained from pursuing any more similar policy measures. This paper explores the relationship between the LDP and the electorate by focusing on tax policy. It highlights that the volatile social group of the “salaryman,” which consists of salaried workers and their families, used to have great influence on tax policy under previous LDP governments. Personal income tax reductions until the 1980s thus were meant to be salaryman tax reductions. They took place during a period when the social group of the salaryman developed into a mainstream part of Japan’s society. However, the group failed to maintain its influence after the 1990s, since when it has been diminishing both in size and in homogeneity. This paper holds that it was this decline of the salaryman population that prevented the LDP government from making any further personal income tax cuts.

Suggested Citation

  • Toyofuku Miki, 2014. "The end of salaryman tax reduction: Japan’s tax policy and its social background," Contemporary Japan, De Gruyter, vol. 26(1), pages 125-149, March.
    • Handle: RePEc:bpj:conjap:v:26:y:2014:i:1:p:125-149:n:5
    DOI: 10.1515/cj-2014-0006
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/cj-2014-0006
    Download Restriction: no
    File URL: https://libkey.io/10.1515/cj-2014-0006?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. L. F. G. De Cazaux, 1965. "On The Budget," Journal of Accounting Research, Wiley Blackwell, vol. 3(2), pages 264-265.
    2. Carolina Torres & Kirsti Mellbye & Bert Brys, 2012. "Trends in Personal Income Tax and Employee Social Security Contribution Schedules," OECD Taxation Working Papers 12, OECD Publishing.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alexander S. Sangare, 2005. "Efficience des marchés : un siècle après Bachelier," Revue d'Économie Financière, Programme National Persée, vol. 81(4), pages 107-132.
    2. Aynur Pala, 2014. "The Effect of Valuation Ratios, Gold Price, and Petroleum Price on Equity Returns: A Comparison of Static Panel and Quantile Regressions," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 4(1), pages 80-89, January.
    3. Stephanie Bell, 1999. "Functional Finance: What, Why, and How?," Economics Working Paper Archive wp_287, Levy Economics Institute.
    4. Bautista, María Angélica & González, Felipe & Martinez, Luis R. & Muñoz, Pablo & Prem, Mounu, 2020. "Does Higher Education Reduce Mortality? Evidence from a Natural Experiment in Chile," SocArXiv 5s2px, Center for Open Science.
    5. Denis Cogneau & Yannick Dupraz & Justine Knebelmann & Sandrine Mesplé-Somps, 2021. "Taxation in Africa from Colonial Times to Present Evidence from former French colonies 1900-2018," Working Papers halshs-03420664, HAL.
    6. repec:ags:ucdegw:233345 is not listed on IDEAS
    7. Bautista, M. A. & González, F. & Martínez, L. R. & Muñoz, P. & Prem, M., 2020. "Chile’s Missing Students: Dictatorship, Higher Education and Social Mobility," Documentos de Trabajo 18163, Universidad del Rosario.
    8. Lindemann, Henrik, 2015. "Regulatory Objectives and the Intensity of Unbundling in Electricity Markets," Hannover Economic Papers (HEP) dp-544, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    9. Jorge Núñez Ferrer & Jacques Le Cacheux & Giacomo Benedetto & Mathieu Saunier & Fabien Candau & Claude Emonnot & Florence Lachet-Touya & Jorgen Mortensen & Aymeric Potteau & Igor Taranic, 2016. "Study on the potential and limitations of reforming the financing of the EU budget [Perspectives et limites pour réformer le financement du budget de l’UE]," Working Papers hal-01848029, HAL.
    10. Spector, Lee C, 1999. "Macroeconomic Models and the Determination of Crowding Out," Public Finance = Finances publiques, , vol. 54(1-2), pages 84-98.
    11. Burkhauser, Richard V. & Corinth, Kevin & Elwell, James & Larrimore, Jeff, 2019. "Evaluating the Success of President Johnson's War on Poverty: Revisiting the Historical Record Using a Full-Income Poverty Measure," IZA Discussion Papers 12855, Institute of Labor Economics (IZA).
    12. Marcel, Mario, 2001. "Balance Estructural del Gobierno Central. Metodología y Estimaciones para Chile [Structural Bazlance of Central Government. Methodology and estimates for Chile]," MPRA Paper 43338, University Library of Munich, Germany.
    13. Leandros, Panayota, 1997. "The Greek Economy and European Integration," MPRA Paper 93279, University Library of Munich, Germany.
    14. Lindemann, Henrik, 2015. "Budgetary Interests and the Degree of Unbundling in Electricity Markets - An Empirical Analysis for OECD Countries," Hannover Economic Papers (HEP) dp-543, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    15. Nenovsky, Nikolay, 2020. "The Theory of the Emission Economy Bolshevik roots of "Modern Monetary Theory"," MPRA Paper 113048, University Library of Munich, Germany.
    16. Yasuo Kofuji, 1984. "On the Efficacy of Fiscal Policy and Price Level Changes," Public Finance Review, , vol. 12(2), pages 167-181, April.
    17. Sylwester Bogacki & Agnieszka Sulimierska, 2021. "Personal Income Harmonization Process," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 2), pages 572-586.
    18. Csillag, István, 2001. "Költségvetési összhangzattan. Diktatúrából a demokráciába? [Budgetary harmony. From dictatorship to democracy?]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(10), pages 824-843.
    19. Ponticelli, Jacopo & Voth, Hans-Joachim, 2020. "Austerity and anarchy: Budget cuts and social unrest in Europe, 1919–2008," Journal of Comparative Economics, Elsevier, vol. 48(1), pages 1-19.
    20. Ernest J. Eberling, 1966. "MARSHALL R. COLBERG. Human Capital in Southern Development, 1939-1963. Pp. xv, 136. Chapel Hill: University of North Carolina Press, 1965. $5.00," The ANNALS of the American Academy of Political and Social Science, , vol. 366(1), pages 210-217, July.
    21. Amanjot Singh & Manjit Singh, 2016. "Risk–Return Relationship in BRIC Equity Markets: Evidence from Markov Regime Switching Model with Time-varying Transition Probabilities," Metamorphosis: A Journal of Management Research, , vol. 15(2), pages 69-78, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:conjap:v:26:y:2014:i:1:p:125-149:n:5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.