Japan to Raise Taxes for Rich with Annual Income of 3 B. Yen

Politics

Tokyo, Dec. 13 (Jiji Press)--Japan’s government and ruling parties are considering raising taxes for the superwealthy whose annual income totals 3 billion yen or more including gains from financial assets, informed sources said Tuesday.

The move is aimed at correcting the situation known as the 100-million-yen wall, in which the income tax burden ratio starts to decline when annual income tops 100 million yen, the sources said.

“We’d like to increase the tax burden on people whose annual income averages some 3 billion yen,” Yoichi Miyazawa, chairman of the ruling Liberal Democratic Party’s Research Commission on the Tax System, told reporters at the LDP’s headquarters in Tokyo.

Meanwhile, the government and the ruling camp plan to offer the superwealthy a tax break for reinvestment of capital gains in startup companies so as not to reduce willingness to invest among successful entrepreneurs earning huge income from financial assets.

Specifically, up to 2 billion yen of capital gains would be exempted from taxation if entrepreneurs reinvest them in startups, the sources said, adding that the measure is also aimed at facilitating a shift of funds to startups.

[Copyright The Jiji Press, Ltd.]

Jiji Press