slide1 n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Minimum Wage, Earned income Tax Credit, Child Allowance and Basic Income in Japanese Policy Reform PowerPoint Presentation
Download Presentation
Minimum Wage, Earned income Tax Credit, Child Allowance and Basic Income in Japanese Policy Reform

Loading in 2 Seconds...

play fullscreen
1 / 29

Minimum Wage, Earned income Tax Credit, Child Allowance and Basic Income in Japanese Policy Reform - PowerPoint PPT Presentation


  • 173 Views
  • Uploaded on

Minimum Wage, Earned income Tax Credit, Child Allowance and Basic Income in Japanese Policy Reform. Shinji Murakami (Ritsumeikan University Post-Doctral Felllow). The Government Changed in Japan, 2009 Some of the policies reforms are relevant to BI(basic income)

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Minimum Wage, Earned income Tax Credit, Child Allowance and Basic Income in Japanese Policy Reform' - noreen


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide1

Minimum Wage, Earned income Tax Credit, Child Allowance and Basic Income in Japanese Policy Reform

Shinji Murakami

(Ritsumeikan University

Post-Doctral Felllow)

introduction

The Government Changed in Japan, 2009

Some of the policies reforms are relevant to BI(basic income)

Focusing on MW(minimum wage), EITC(earned income tax credit), CA(child allowance)

Discussing Japanese tax reform which is related to the affordability about BI

Introduction
1 minimum wage 1 1 minimum wage in japan

The process determining the regional MWs

(1) national MW council : the public interest , employers, employees

→establishing “reference's wage”

(2) local MW councils

→the national council has a significant on the final decisions of local councils.

1. Minimum Wage1.1. Minimum wage in Japan
1 minimum wage 1 1 minimum wage in japan1

In the negotiations of the national council

→The opinions of representative of the public interest are a decisive factor

→There are always conflicts between the representatives of employees and employers

1. Minimum Wage1.1. Minimum wage in Japan
1 minimum wage 1 1 minimum wage in japan2

An industry MW is determined by the deliberation of national council

←The national council accepts the necessity of increasing specific industry MW

1. Minimum Wage1.1. Minimum wage in Japan
1 minimum wage 1 1 minimum wage in japan3

January 28, 2010

The Ministry of Health, Labour and Welfare

The Ministry of Economy, Trade and Industry

→Setting up a task force to examine the effects of increasing the MW

→Intending the aim of immediate level is 800

yen per a hours

1. Minimum Wage1.1. Minimum wage in Japan
1 2 effects of increasing mw

Card and Krueger (1995) and

Tachibanaki and Urakawa (2007) (in Japanese)

→Advantage in increasing MW

→Increasing employment, rising the working poor's income

1.2. Effects of increasing MW
1 2 effects of increasing mw1

Some studies(Neumark and Wascher (2008), Kawaguchi and Mori (2009) etc.)

→Reducing employment opportunities for less-skilled worker

→Tending reducing their earnings

1.2. Effects of increasing MW
1 2 effects of increasing mw2

Negative advocate about minimum wage:

Suggesting refundable tax credit or BI

Whether increasing MW is compatible with BI

in the Japanese social context

1.2. Effects of increasing MW
1 2 effects of increasing mw3

A central point: The level of BI or refundable tax credit and the range increasing MW

High level of BI →MW may not be necessary

Low level of BI →MW could play important roles

1.2. Effects of increasing MW
potential increasing mw in japan cf oecd 2007 date not low rate of japanese unemployment
Potential Increasing MW in Japan

(cf. OECD 2007 date)

→Not low rate of Japanese unemployment

1.2. Effects of increasing MW
slide12
The high level of corporate tax in Japan

→a lower rate of corporate tax

→compensating the increasing minimum wages in Japan

1.2. Effects of increasing MW
slide13
The high level of corporate tax in Japan

→a lower rate of corporate tax

→compensating the increasing minimum wages in Japan

1.2. Effects of increasing MW
2 refundable tax credit 2 1 the earned income tax credit

EITC as more modest or mini version of the

negative income tax

→The Japanese tax commission , 2009

→Some researcher have examined the feasibility of EITC in Japan

→EITC is characterized by workfare policy

2. Refundable tax credit2. 1. The earned income tax credit
2 refundable tax credit 2 1 the earned income tax credit1

EITC can be interpreted as a variation of BI

→EITC is conditioned on work

→However, refundable income tax credit is not necessary work

Example :

Child allowance(CA) started in Japan, June 1, 2010.

2. Refundable tax credit2. 1. The earned income tax credit
2 refundable tax credit 2 2 child allowance

A refundable tax credit is related to child care support policy

The Democratic Party of Japan's the House of Representatives election manifest in 2009:

An allowance for each child up to the third grade in middle school (15 years old)

2. Refundable tax credit2. 2. Child allowance
2 refundable tax credit 2 2 child allowance1

The Democratic party planed to make the monthly 26000 yen allowance a permanent measure

CA is without a means test →partial BI

→However, the present administration plans to give half the amount, or 13000 yen, in fiscal 2010

2. Refundable tax credit2. 2. Child allowance
2 refundable tax credit 2 2 child allowance2

→In the newest plan, the amount of CA is added after 2011

→The added amount of CA is possible for substituting social service (ex: increasing

nursery school)

→These combination is determined by the localgovernment as administrative localization

2. Refundable tax credit2. 2. Child allowance
slide19
CA is selected by the category

⇔The variation of partial BI is a kind of negative income tax which is selected by means-test

2. Refundable tax credit2. 2. Child allowance
3 the possibility of realizing partial basic income in japan

Focusing on the similarity of synthesizing the income tax regime and subsidy policy

Relating to the computerization of tax technology and the social security number

to capture just individual revenue level

3. The possibility of realizing partial basic income in Japan
3 the possibility of realizing partial basic income in japan1

Suggesting a return to more progressive income tax and increasing rate of consumption tax.

→not just to raise revenue but to narrow the

Japan's income inequality

3. The possibility of realizing partial basic income in Japan
3 the possibility of realizing partial basic income in japan2

Suggesting a return to more progressive income tax and increasing rate of consumption tax.

→not just to raise revenue but to narrow the

Japan's income inequality

3. The possibility of realizing partial basic income in Japan
there are difficult problems the change will link to some variation of bi
There are difficult problems

→The change will link to some variation of BI

4. Conclusion