Japan plans tax breaks to achieve economic security, wage growth

Additionally, the government is considering expanding tax reduction measures for small and midsize companies that have lagged behind larger firms in raising pay, which would be in line with Prime Minister Fumio Kishida's drive to increase wealth redistribution.

Great strategy. Let's give tax relief to companies, not workers, which have not passed down gains in productivity to workers for decades.

Maybe they will decide to pass it on to the workers, maybe not if they hoard it, sequester it in tax haves as before.

https://english.kyodonews.net/news/2021/10/83b734bcc16e-1000-japan-firms-people-named-in-pandora-papers-on-tax-havens.html

Anyway, let's leave it in the good hands of shacho-san to make the decision.

About sums up New Capitalist strategy.

As smaller firms face difficulties coping with labor shortages and raising employees' pay, the government is considering providing subsidies to those investing in labor-saving technologies, according to the plan.

And subsidize automation that exclusively benefits shareholders and that will put many out of work.

Kishidas wealth redistribution in full effect.

When I read the title, I automatically KNEW that the tax breaks would be for companies and not consumers.

Had to double check but sure enough there it was.

And if the LDP really thinks its going to achieve economic security and wage growth through tax breaks for companies they are dumber than I even thought.

But I doubt they are. These are just excuses to keep their gravy train going.

Corporate Japan is already earning its highest profits in history and its hoarded cash piles, aka "retained earning," have also been at record highs. They also got an overall corporate tax cut in 2019.

The last thing they deserve is a tax break! The trend is to help the wealthy and powerful, at the financial expense of working people who are paying more and getting less.

"We will transform the economy into a growth-oriented one, led by sustained wage growth and active investment," Kishida told a government panel during a meeting, when the outline was presented.

The same party in power for decades and this is some ‘future plan’ ?

> Inflation relief for consumers will be one of the pillars of the new package.

And here I was thinking that deflation was bad and inflation good.

Yet now we need relief from inflation?

Amazing!

> The government wants to make it easier for workers to reskill and change jobs and plans to boost the minimum hourly wage to 1,500 yen by the mid-2030s 

…

The lazy and feckless make empty propositions for a decade in the future?

Unconscionable!

More tax breaks for the filthy rich!

I also wonder how Kishida ever knows what Japanese people need when he is hardly in the country and when he is back then the jet lag is so severe that he can’t think straight until his next foreign jaunt

The best tax break they could give would be on the consumption tax, but we know that will never happen. Too easy.

Man I gotta get in on this whole being a company thing. You get to live rent free it seems

Nonetheless, the measures are expected to create spill-over effects for local economies and create jobs.

Spill over ... sounds like trickle down economics and incentivizing the job creators both words which just mean corporate welfare and tax breaks for the rich that will never be seen by the public

Surprising governments can still get by with saying this given the track record of such policies but 8n a one party oligopoly it matters little

There should be no special carveouts for interests favoured by the current crop of politicians.

How about Japan gets back to sound money, reduces governments spending, cuts tax rates and simplifies the tax system?

That would benefit most everyone, not just people in a few pockets here and there, at the expense of the rest of us. (The losers would be tax advisors.)

Stop aiding these cash cows, do something about bringing down prices in this country and the only way to do that is to strengthen the yen.

Shame on this government and their handling of this economy.

We don't need tax breaks for rich semiconductor conglomerates, we need a lot more of average income for everyone, so that it is not even a problem to pay much more taxes for all the things the society has to pay from now on, to name a few, the already existing debts mountain piled up during former years, politics for more childbirths and family support, quickly rising social security and health care costs in a fast aging population and of course more budgets for expensive defense projects, and last but not least modernization of infrastructure like roads, tunnels and bridges which also are due soon etc. How do they intend to pay all that with sinking tax money influx instead of necessary higher but not anymore hurting tax increases? Piling up even more debts and taxing the 1500yen minimum wages of 2030's at the supermarket? That surely won't work out so well.

There is zero wage growth outside of the 2.67% of Union employees out of the total workforce working for the big companies.

LOL giving tax breaks to the very same companies that are suppressing wages. Its like letting a bank robber guard the safe!!!

You are useless at making a deal with someone if you give them something and simply hope that they might give something back in return. The normal way to do it is to say “We’ll give you this if, and only if, you give us that.” Any tax breaks given to companies should only be given if they increase salaries at the bottom end and middle by a certain amount. No salary increases, no tax breaks.