Kimiya ITO

This paper examines the problem of the "100 million yen barrier" in financial income taxation, referring to the recent U.S. tax system and considering solutions based on the actual situation in Japan. The taxation of asset-based income in Japan (particularly the taxation of financial income and the taxation of income from the transfer of land and buildings, which is subject to separate taxation) has historically been structured in a complex way to incorporate a variety of policy taxation systems. The paper proposes that, when introducing a policy taxation system to correct the disparity, it would be desirable to maintain the current structure in the short term, while imposing an additional new tax burden on the asset-based income of taxpayers with income exceeding 100 million yen.