Japan to slash corporate tax rate to below 30%

Japan Today ^ | 14 July 2014 | Anonymous

[rjbemsha]

The Japanese government said Friday it was slashing Japan’s corporate tax rate, one of the world’s highest, as the country’s top central banker called for speedier reforms to unshackle an economy long mired in red tape.

The cuts would bring the levy under 30% within a few years, resulting in a tax rate ranging from 20% to 29%, depending on the jurisdiction.

Company taxes, including a rate of 35.6% in Tokyo, are the second-highest in the Organization for Economic Cooperation and Development (OECD) behind the United States, which some critics say has held back the world’s number three economy.

[rjbemsha]

"Some lawmakers had expressed concern at cutting corporate taxes when only about 30% of Japanese firms pay anything—due to weak finances."

[Former Proud Canadian]

Cut taxes to increase incentive and output? What a novel concept!

In reality, of course, corporations pay no taxes no matter what the "rate" is. They do collect taxes but the cost of those taxes are borne by: the employees, the investors, and the consumers of whatever good or service is being produced.

[txrefugee]

So that will leave only the US with a rate of 35%. We are broke and stupid.

[jsanders2001]

That’s how you stimulate an economy. You take the handcuffs off the producers and let them do what they do best.