Japanese Government Task Force Recommends Corporate Tax Cuts

A government task force on Friday called for corporate tax cuts and a broader share of the tax burden to be placed on companies, emphasizing that Japan’s current system requires only some profit-making firms to pay taxes.

The group, created under the Tax Commission to discuss issues related to corporate tax, also said in its proposal that broadening the tax base would help secure financial resources to cover a possible decline in tax revenues.

The proposal was released a day after Prime Minister Shinzo Abe expressed eagerness to pledge in his administration’s new longer-term economic and fiscal policy blueprint to cut the country’s relatively heavy corporate income tax rate over the coming years.

The group of the government tax commission — an advisory body to Abe — plans to finalize the proposal in the near future. It is expected to be incorporated in the policy blueprint scheduled to be compiled in June.

via Mainichi

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza