politics

Gov't plans to offer more than Y1.4 tril in corporate tax cuts

18 Comments
By Stanley White

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18 Comments
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How does this offset the planned sales tax hike??? Why is the national government spending 1 trillion for the Olympics? Shouldn't Tokyo pay for that? What a joke!!

11 ( +13 / -2 )

How nice... the average struggling Taro and Keiko get no relief at all from the sales tax increase ( I distinctly remember the govt. proclaiming that reduced tax rate on food or medicine would be " difficult" to administer ) , while the big business buddies / donors get tax breaks and fat government contracts to compensate. All this money handed out to big business and public spending going off the scale while the LDP cries poor to the middle class about having to increase shoouhizei because there is "no other way " to repair state finances and secure social security system.

Now...would you all please bend over some more while we "humbly ask for your understanding ".Yoroshiku onegaiitashimasu.

11 ( +12 / -1 )

1.4 trillion yen in corporate tax cuts in an economic stimulus package intended to offset the blow from planned sales tax hikes

Yep, the rich get richer and the poor get poorer. Does anyone actually believe these tax breaks will filter down through the classes and increase salaries for the workers? Of course it bloody won't. It'll just go into filling the coffers of the corporate giants while Naoki Avarage and his family foot the bill. I can still clearly remember Abe stating how his economic reforms will increase disposable income for families. I guess he just wasn't specific about which demographic of families his policies would support.

9 ( +11 / -2 )

Is that really the economy Trickling down? The people say it smells a bit suspicious...

7 ( +7 / -0 )

Just plain old looting, the bare face of corruption and corporate socialism. It's not even thinly disguised. Back to the good old days of everything rigged, corrupt and for sale in Japan! The US is not far behind at all.

5 ( +6 / -1 )

Oh kriff it. Here we go again ... tax cuts to the rich ... tax hikes to the poor.

But then, can we actually realistically get someone else in Japan that doesn't do that?

5 ( +7 / -2 )

Only if people stop voting as they are told, and start voting with their heart, Kazuaki Shimazaki.

4 ( +4 / -0 )

It would make sense if the tax breaks for for very small firms and for small business owners, but basically this is a give-away to corporate friends of the LDP, who are to turn around and continue to get this bunch of scammers elected. Already time to punt them out of office as they didn't learn the lesson the last time that the people want better representatives and governance.

5 ( +6 / -1 )

Love to draw up a truth table of Abe's options but lets simplify things. option 1 He sits it out and doesn't increase sales tax. Foreign institutions such as S&P will rant and rave about Japan not taking their debt seriously and downgrade JGBs. Yields surge, debt problem increases. JT experts say I told you so, Abe is a Richard. option2 He increase sales tax and does nothing else. Foreign institutions smile, global funds invest in Nikkei, JGB yields fall further. Average Japanese consumer and small company owners complain that sales get worse and only the rich benefit. JT experts say I told you so only the rich benefit, Abe is a Richard. option 3 As per the article, Abe increases sales tax but also decrease corporate tax. Foreign institutions smile, global funds invest in Nikkei, JGB yields fall, some companies increase bonuses. JT experts say I told you so, I didn't get any pay rise and my mates are suffering and Abe is a Richard.

1 ( +2 / -1 )

Abe is a Richard. Can we skip the all get poorer bit?

3 ( +3 / -0 )

This is what we called "All Hell Breaks Lose", an attempt to test the public sentiment. The recent policies being introduced recently have all gone wrong......

The policies should be the other way round, "Corporate tax should be increased while sales tax should be reduced", idiots!

Increasing sales tax will severely affect the whole nation in general especially the laymen and every households on the streets while reducing Corporate tax will benefit selective few, morons!

The economic advisor who came up with this idea of hiking in sale tax and reducing corporate tax as an excuse to combat the effect should be shot or sentenced to maximum penalty in prison...... he is trying to drive Japan economy further.

This is what we call "The rich gets richer and the poor gets poorer" PERIOD!!!!

The Governor of BOJ should be terminated and dismissed - a bankrupt of economic ideas.

5 ( +5 / -0 )

Wonderful! And this helps your average Joe Tanaka.... how? Helps him/her deal with the tax hikes how?

4 ( +5 / -1 )

They call this alienation in its pure form, or insult to human intelligence. What most governments are doing to their populace.

3 ( +4 / -1 )

Looks like a robbery but look at the bigger picture. Companies will pay dividends to stock holders, themselves keeping their investments. A company with no capital, can't run. Also companies will be able to re-invest that money for new products, research, etc. to make it short, employ people. The company tax is way too high anyway. The consumer tax increase is not related. It's better for the governement to have company employing people, than supporting financially people. They must find a balance between corporate taxes and consumer tax.

-5 ( +0 / -5 )

Screw the masses with a hike in the sales tax, and give the corporations who's upper management is in bed with the government a tax break.

2 ( +2 / -0 )

Looks like a robbery but look at the bigger picture. Companies will pay dividends to stock holders, themselves keeping their investments. A company with no capital, can't run. Also companies will be able to re-invest that money for new products, research, etc. to make it short, employ people. The company tax is way too high anyway. The consumer tax increase is not related. It's better for the governement to have company employing people, than supporting financially people. They must find a balance between corporate taxes and consumer tax.

I agree entirely with that people should be employed with companies rather than be on welfare. Just the same, just because you cut taxes for the rich doesn't necessarily transfer to most of the people. All too easy for the companies to employ people ... in China or Vietnam, just to name one option.

A better solution would be to bring back the higher progressive income tax rates of an earlier era. Ironically, the era with the high income tax rate (for the rich people) is when Japan is generally agreed to be at its economic best.

Or maybe the government can somehow work out a way to specifically reward companies that hire more locals or pay them a more decent wage. Surely, with the amount of "administrative guidance" that goes on in Japan, this should be possible.

1 ( +2 / -1 )

Before all of you whine about tax breaks and loopholes for corporations, also consider what they engage in to earn those breaks. Did they invest in plants, equipment, drilling, building, etc, etc.? Were those tax breaks or loopholes given in exchange for some such behavior? If so, we have to calculate the cost/benefit of this and there's a reason J-goverment is offering tax incentives to corporations, it's to incentivize certain behavior. Eliminate the breaks, and we eliminate our influence over these entities.

-1 ( +0 / -1 )

Lets hope this does what its supposed to do - ie kick-start the economy - because if it doesn't then there's going to be a lot of unhappy taxpayers...

Wonderful! And this helps your average Joe Tanaka.... how? Helps him/her deal with the tax hikes how?

If it means more full time employment, higher wages, and/or cheaper, more competitive products, it could help quite a bit. If it just means more executive comp or higher dividends, then probably not so much....

0 ( +0 / -0 )

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