Japan's Tax Incentive to Boost Wages Largely Ineffective Due to High Number of Unprofitable Small Businesses
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Japan launched a tax incentive 10 years ago to boost wages, but it has largely failed as most smaller businesses are losing money.
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60% of smaller Japanese businesses are ineligible for the tax break because they are operating at a loss.
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Prime Minister Kishida wants to expand the tax incentive program in 2024 to return revenue growth benefits to the public.
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The government is developing a stimulus package this month that may include tax cuts to promote pay raises.
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Though the government hasn't decided on which taxes to cut, wage incentives seem to be a priority in the agenda.