Population Aging and Individual Tax Burden: An Empirical Analysis of Japan, South Korea, and Taiwan

Author : Wan-Yi Hsu, Yi-Chung Hsu

Abstract :This study investigates the impact of population aging on individual tax burdens in Japan, South Korea, and Taiwan. Using panel data from 1998 to 2022, it analyzes how demographic changes and related variables influence tax burdens. The results indicate significant quantile heterogeneity: population aging strongly affects medium-to-high quantiles, where higher tax burdens make countries more vulnerable to aging populations due to increased social welfare expenditures. In contrast, lower quantiles show limited sensitivity. Economic growth rates and the Corruption Perceptions Index also significantly affect tax burdens, while variables like unemployment and fertility rates highlight differences in national demographic and economic structures. This study enhances the literature by providing a cross-national analysis of population aging and tax burdens, offering evidence for policymakers to balance taxation and social welfare while ensuring fiscal sustainability.

Keywords :Population aging, Tax burden, Japan, South Korea, Taiwan.

Conference Name :International Conference on Management, Accounting, Banking, Economics and Business Research (ICMABEBR-25)

Conference Place Osaka, Japan

Conference Date 21st Jan 2025