Japan's Hometown Tax (2018)

# · 🔥 267 · 💬 359 · 4 days ago · www.kalzumeus.com · Michelangelo11
A substantial portion of Japan's income-based taxes are residence taxes, which are paid to the city and prefecture that one resides in, based on one's income in the previous year. Individual residence tax is roughly 45% of the city's revenue. While not formally defined in the legislation for the Furusato Nouzei system, someone at a city government figured that it was just not appropriate to let someone just give ~3% of their salary to the city without receiving a token of appreciation in return. A number of cities in Japan, including my adoptive home town of Ogaki, have made this offer: for a no-cost-to-you donation of $100 or more, the city will send someone out to any grave in the city limits. Then some bureaucrat realized that this created a market: you, as a city government, can bid for taxpayers to select you as a hometown. It's a great game theory problem: unless a supermajority of cities collectively agrees to limit gifts to a token number, it's strongly in a city's interest to duck the central government's questionnaires and not express any objection to the status quo. Cities with declining local tax bases really do get enough money to do material projects with.
Japan's Hometown Tax (2018)



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