PrintDecember 14, 2010
Japan cuts corporate tax rate to spur economy
Japan offers a lesson to President Obama and the Democrats: cut taxes on job creators to spur the economy. Japan's liberal Prime Minister Naoto Kan has announced his decision to cut Japan's corporate tax rate -- currently the highest in the world -- by 5 percentage points, to 35% (the current US level).
By coming down on the side of the tax cutters, Mr Kan has reinforced the embrace of business-friendly policies by his left-leaning Democratic party, which before its historic election victory last year tended to focus more on social welfare and environmental issues.The DPJ-led government had already unveiled a "new growth strategy" under which it pledged to lower the 40 per cent effective corporation tax rate to a level closer to that of competitor nations - put at 25-30 per cent - during the next decade.
He response was immediate, and favorable: Japan's stock market has risen to a seven month high.
President Obama: listen up!
President Obama: listen up!
Hat tip: Bryan Demko
