Osaka business groups want permanent income tax cuts+OSAKA, Aug. 3 KyodoTwo major business organizations in Osaka urged the government Monday to implement permanent cuts in income and corporate taxes and to deregulate deregulate To reduce or eliminate control. One of the major forces in the financial markets in the 1970s and 1980s was the federal government's decision to deregulate interest rates. the national economy further so as to revitalize re·vi·tal·ize tr.v. re·vi·tal·ized, re·vi·tal·iz·ing, re·vi·tal·iz·es To impart new life or vigor to: plans to revitalize inner-city neighborhoods; tried to revitalize a flagging economy. the stagnant economy. The Japanese economy is on the verge On the Verge (or The Geography of Yearning) is a play written by Eric Overmyer. It makes extensive use of esoteric language and pop culture references from the late nineteenth century to 1955. of a crisis and a quick decision by the government is needed to overcome it, the Kansai Economic Federation (Kankeiren) and the Osaka Chamber of Commerce and Industry said in their letters presented to Prime Minister Keizo Obuchi Keizo Obuchi (小渕恵三; Obuchi Keizō, June 25, 1937–May 14, 2000) was a Japanese politician who served in the House of Representatives for twelve terms, and ultimately as the 84th Prime Minister of Japan from July 30, 1998 to April 5, . Kankeiren called on the government to lower the maximum income tax rate starting next January to 50% and the effective corporate tax rate to 40% from the current 46%. They also stressed the need for economic deregulation Deregulation The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry. Notes: Traditional areas that have been deregulated are the telephone and airline industries. in order to create jobs and raise liquidity in the labor market labor market A place where labor is exchanged for wages; an LM is defined by geography, education and technical expertise, occupation, licensure or certification requirements, and job experience . The Osaka Chamber of Commerce and Industry called for an income tax cut of more than 5 trillion yen. They also opposed any change in corporate taxation that would pave the way for taxes on money-losing companies, on the grounds that it would lead to an increase in bankruptcies. At present loss-incurring companies are free from corporate taxes. Some 64% of the country's 2.4 million corporations are in the red and thereby tax-free. The Federation of Economic Organizations (Keidanren), Japan's most powerful business lobby, has proposed a new ''corporate citizenship tax'' that would be based on a company's capital and the size of its workforce, even on loss-incurring companies, in exchange for the abolition of local corporate income taxes. The Tax Commission, a government advisory panel on taxation, presented a report last December in favor of local corporate income taxes charged on the basis of specific standards such as capital. But small and medium-size companies and their business groups, such as the Japan Chamber of Commerce and Industry, strongly slammed the report. |
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