In Japan, about 70% of corporations are deficit corporations where no corporate tax is imposed. For example, in a family corporation where the president holds all of its shares, he or she is in a position to be able to determine his/her own remuneration at a level that avoids corporate taxation. Moreover, since the income category of directors' remuneration is employment income, he/she can receive employment income deduction and he/she can receive double deduction in addition to corporate income tax deduction. However, it is difficult to deny employment income relevance of directors' remuneration. The conclusion is not changed even if a pass-through taxation to a corporation is introduced. Rather, it is important to review employment income deduction. I believe that pass-through taxation has significance only as a means of securing the trust of the corporate tax system.