Japan Plans to Tax High Earners

The government and the ruling Liberal Democratic Party are in the final stages of talks to increase the tax burden of corporate employees who make more than 12 million yen a year by trimming tax credits, sources familiar with the matter said Sunday.

In its tax reform outline to be compiled possibly Thursday, the government will propose raising the income and residential tax payments of high earners.

The government hopes to extend the range of those covered in the future to individuals making 10 million yen per year.

At present, the maximum amount of tax credits for those making just over 15 million yen a year is 2.45 million yen.

Under the latest proposal, the maximum amount of tax credits for those earning 12 million yen will be reduced to 2.3 million yen.

The government is expected to introduce the increased tax burden in 2016 or later, after the sales tax rate is raised to 10 percent in October 2015.

The consumption tax rate is set to rise to 8 percent next April from the current 5 percent.

via Mainichi

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