ABSTRACT
The proportions of total taxation derived from various forms of taxes have fluctuated, partly as a result of cyclical changes in income, for example the shifts in income associated with the Korea inflation, and partly through changes in the forms of taxation themselves, for example the introduction of the General Turnover Tax in 1960. Criticism of the effects of the existing tax system on incentives to work also seems to us to fall wide of the mark. If tax policy is to have a favourable effect on the structure of the economy it must ensure that there is a sufficient volume of savings in an expanding economy for purposes of stabilization and for financing a growing public sector within such a economy. The idea that business firms ought to carry a larger share of the costs of social insurance in the form of direct dues harmonizes well with our view that company taxation should be completely reconstructed for structural reasons.
