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We analyze the distribution of income and income tax of individuals in Japanfor the fiscal year 1998. From the rank-size plots we find that the accumulatedprobability distribution of both data obey a power law with a Pareto exponentvery close to -2. We also present an analysis of the distribution of the debtsowed by bankrupt companies from 1997 to March, 2000, which is consistent with apower law behavior with a Pareto exponent equal to -1. This power law is thesame as that of the income distribution of companies. Possible implications ofthese findings for model building are discussed.

PARETO'S LAW FOR INCOME OF INDIVIDUALS AND DEBT OF BANKRUPT COMPANIES