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Taxation in Japan The role of taxation in the transformation of the Japanese Economy Introduction Before the Meiji restoration under the feudal Tokugawa Shogunate, taxation was mainly a tool for warfare and military power. The system was highly regressive and pressed lightly on the rich and profit-earners. It was calculated to preserve a very unequal distribution on incomes and to stimulate the accumulation of private capital. This tendency somehow continued and was magnified before W.W.II when direct taxation was introduced for a more equal and balanced system. However, the Meiji restoration did bring with it tremendous changes to the tax system and the use of the revenues. The Japanese government has since had an active Approximate words: 4419 Approximate pages: 18

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