Local Tax Benefits at a Distance Japan's Hometown Tax Donation Payment

This book explores the remedies necessary for regional revitalization with a focus on Japan's unique Hometown Tax Donation system. In particular, the study is centered around the analysis of the system's effect on financing and peripheral areas. In the past, the major financing scheme for regions was to write up a document requesting subsidies from the central government (i.e., Kasumigaseki), and to thereby secure a budget. However, the national government no longer has financial leeway. Japan's national debt has risen to some 2.3 times its GDP (according to documents by the Ministry of Finance)—the worst level among major advanced countries. In the case of companies, financing options have included equity financing, bank loans, and corporate bond issuance (i.e., loans from investors), and in recent years, crowdfunding— a financing method of collecting small funds from numerous individuals via the Internet—has also advanced. In an increasing number of such crowdfunding projects, individuals not only provide funds but also engage in and support the company in various ways, including purchasing their goods and services or supporting their marketing activities. Hometown Tax Donation, the main topic of this book, can be considered crowdfunding by municipalities.
[2021]

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