Hiroyuki Yashio

(Economic and Social Research Institute, Cabinet Office, Kyoto Sangyo University)

Yuichi Hasegawa

(West Japan Railway Company)

In this article, we analyze the household consumption tax burden in Japan. One of characteristics of our research is to analyze it, taking into account other household burdens such as income tax and social security contributions. We modify the micro simulation analysis used by Tajika and Yashio (2007) to analyze not only household burdens of income tax and social security contributions but also consumption tax burden. Considering various tax reforms including consumption tax hike, introduction of reduced rate for food and combination of consumption tax hike and income tax reform, we analyze the effects of these reforms on household tax burden.