By Leika Kihara
TOKYO (Reuters) – Japan’s new prime minister, Fumio Kishida, said on Monday that an adjustment to the financial income tax rate will be among the options to address the income disparity.
At his first press conference as prime minister, Kishida also said he would consider offering cash payments to families most affected by the coronavirus pandemic.
“I flagged an adjustment to Japan’s Income Tax as an option. But that’s not the only option. We can also take measures such as offering tax incentives to companies that increase wages,” said Kishida.
The prime minister said he wants to pursue policies that achieve “a new kind of capitalism” that distributes more wealth to families and resolves Japan’s growing income disparity.
Some academics have called for an increase in the income tax collected on investment income from the current 20% to raise more from the rich and fund measures to help low-income families.
Kishida also said he will create a permanent panel to propose measures to boost economic growth in a post-pandemic world.
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