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Laffer curves in Japan

Kengo Nutahara

Journal of the Japanese and International Economies, 2015, vol. 36, issue C, 56-72

Abstract: This paper investigates the Laffer curves in Japan, based on a neoclassical growth model. It is found that while the labor tax rate is smaller than that at the peak of the Laffer curve, the capital tax rate is either very close to, or larger than, that at the peak of the Laffer curve. This problem is more serious when the consumption tax rate is high. It is also found that to maximize total tax revenue, the government should increase the labor tax rate but decrease the capital tax rate.

Keywords: Laffer curve; Fiscal policy; Labor tax; Capital tax; Consumption tax; Japan (search for similar items in EconPapers)
JEL-codes: E13 E62 H20 H30 H60 (search for similar items in EconPapers)
Date: 2015
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Working Paper: Laffer Curves in Japan (2013) Downloads
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