Estimating the Elasticity of Taxable Income: Evidence from Top Japanese Taxpayers

Takeshi Miyazaki and Ryo Ishida

MPRA Paper from University Library of Munich, Germany

Abstract: This study measures the elasticity of taxable income (ETI) using data on top Japanese taxpayers between 1986 and 1989. During these years, Japan decreased the income tax rates of the top-to-bottom income earners and number of income brackets drastically. We construct a panel dataset of top taxpayers in Japan in this period, using Japanese tax return data and estimate the ETI. We find that the ETI with regard to the net-of-tax rate is approximately 0.074–0.055, considerably lower than those for the United States and most European countries but nearly equal to that for Denmark.

Keywords: Elasticity of taxable income; income tax; Japan; top taxpayers (search for similar items in EconPapers)
JEL-codes: H21 H24 (search for similar items in EconPapers)
Date: 2016-10
New Economics Papers: this item is included in nep-acc and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Estimating the elasticity of taxable income: Evidence from top Japanese taxpayers (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:74623

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