To Boost Consumption Japan Looks in to Inheritance Tax Hike

As Japanese families gathered earlier this month for the traditional “Obon” festival honoring ancestors, some elderly parents broached an awkward but increasingly critical topic: planning for inheritance.

Japan’s government will increase the inheritance tax rate in January, while tax relief measures on gifting will be expanded, in moves aimed at encouraging wealthy, older Japanese to either spend or pass on their savings before they die.

In years to come, the change would release billions of dollars languishing in savings accounts into the hands of a younger generation and promote investments in stocks and property, giving the economy an extra push as it emerges from nearly two decades of deflation.

via CNBC

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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