PUBLICATIONS & REPORTS
PUBLICATIONS & REPORTS
From Kitakyushu to the world: AGI, a research institute that studies Asia's economy and society
A Comprehensive Analysis of the Redistribution Structure of Taxes and Social Security Contributions in Japan
| Author | HARA Eiji, KUROSAWA Yoshiyuki, GOTO Chika |
|---|---|
| Date of Publication | 2025. 6 |
| No. | 2025-13 |
| Download | 1.7MB |
Contents Introduction
This paper provides a comprehensive analysis of Japan's tax and social insurance redistribution systems, offering solutions to the identified problems. Firstly, it illustrates that the Japanese government's function of redistributing income through taxes and social insurance premiums is weak, especially when compared to other countries regarding income disparities. The paper identifies specific characteristics of Japan's burden structure that contribute to this weakness: 1) low income-tax rates coupled with high social insurance premiums, and 2) an extremely light tax burden on the middle-income group. Additionally, it examines the factors that lead to this unique burden structure and its drawbacks, ultimately proposing potential solutions.