Finance minister to examine an increase in maximum income tax rate

Japan Press Weekly

Japan Press Service Co., Ltd. is the only news agency providing information of progressive, democratic movements in Japan

Finance minister to examine an increase in maximum income tax rate

Japanese Communist Party House of Councilors member Sasaki Kensho at the House Financial Affairs Committee on February 19 emphasized that the income redistribution function of a progressive income tax is important in view of the need to narrow the gap between the rich and the poor.

He said, “The United States and Great Britain have increased the maximum rate for the income tax and the dividend tax rate. Japan should draw on these experiences.”

In reply to Sasaki’s question, Finance Minister Kan Naoto said, “Japan lowered the maximum income tax rate. Japanese economy as a whole, however, has not been enhanced. I know of the measures taken by the U.S. and Britain. I want to reexamine the top income tax rate in the Tax Commission.”

JCP Chair Shii Kazuo also proposed that the maximum rate for income tax be increased in his talks with Prime Minister Hatoyama Yukio on February 17. The prime minister said, “I will consider your proposal within the Democratic Party or in the Tax Commission.”

The maximum income tax rate, which was 70% in 1986, has been steadily decreased and is now 40%.

- Akahata, February 20, 2010