The Limitations of Post−war Personal Income Tax in Japan,1950 to 1959
五嶋, 陽子Gotoh, Yoko
43 , 2017-03-25 , 神奈川大学経済貿易研究所
This paper defines the characteristics of the personal exemptions and the allowances for dependents in the fundamental reform of the personal income taxation C. S. Shoup and the American tax experts recommended on a mission in 1949 for post−war Japan to remain as a democratic state, which the Supreme Commander for the Allied Powers (SCAP) had been attempting to remake Japan into. Besides analyzing the differences among Seligman, Simons and the mission in logical justification of inaugurating the personal exemptions and the allowances for dependents and in methodological patterns of reducing the income tax liabilities, the continuity / discontinuity of the pre−war personal income tax system was taken into consideration to clarify the direction of changing the tax treatment of family. It is also highlighted that there was a critical gap between Shoup’s stereotype of family and the practical component of Japanese family. Implementation of the exemptions and the allowances, which was never far from the proposals given by the mission and Shoup, was hardly sufficient to improve the quality of life of households permeating to different work strata from workers to farmers. It is examined that additional income other family members earned and / or withdrawal from savings should indemnifyfor financial deficits of households of workers, in contrast to exempted self−consumption of crops and seasonal work wages for farmers.