business

Japan's tax incentive for raising wages may have limited appeal

7 Comments
By Stanley White

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7 Comments
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Punishments will work better than incentives. Threaten to rescind the corporate tax cut if they refuse to pay their workers raises in line with their profit growth.

4 ( +5 / -1 )

Most companies would rather relocate to China and save over half of their income on paying lower wages....

4 ( +5 / -1 )

The government has it all wrong.

The most powerful incentives are market forces based incentives.

Companies will raise wages when they have to to keep the competition from poaching the best staff. Or otherwise the weak companies will be shutdown, and new stronger ones will take their place.

-3 ( +0 / -3 )

fxgai,

Sorry man I have to call BS on market forces, we have witnessed MANY companies racking in huge profits in many years since the 80s while every damned year upper management then trots out the same line roughly, ""we don't know if we can maintain this kind of profitability so we cant justify significant wage increases""

This BS has gone on for far far too long, in the meantime upper management award themselves big bonuses & get stock etc

The little people get sweet F all for the last 30+ years....

There is a lot that is wrong & I say this as one who was self employed for over 20years so I can clearly see what the hell is going on.

The big wigs are slowly KILLING the golden goose, the middle & lower classes, its heading in a very bad direction when all this hits the fan, it will be catastrophic!

3 ( +4 / -1 )

GW, that businesses can make excuses not to hike wages only solidifies my point that they are not subject to market forces.

Japan needs structural reforms to change that.

Stagnant wage growth is a mere symptom of Japan’s problems, not a root cause that can be fixed by central decree.

0 ( +0 / -0 )

fxgai,

Ok, then please explain why companies in NAmerica, Europe, UK etc etc ALSO have kept wages stagnant for decades all the while MANY companies have made off like bandits, it is UNSUSTAINABLE, I was not talking about just Japan.

0 ( +0 / -0 )

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