Saturday, November 27, 2010

Corporate tax cuts eyed by DPJ team

The Yomiuri Shimbun published an article about the upcoming tax reform bill. According to them, the DPJ wanted to lower the corporate tax rate. On the other hand, the DPJ also wanted to remove certain corporate tax exemptions, such as the tax exemption on naphtha and the tax exemption on research and development. However, on the whole, the DPJ wanted to make sure the corporate sector gained more money than it lost from the reforms.

While giving money to corporations, the DPJ wanted to take money away from individuals. For example, the DPJ wanted to increase the capital gains and dividend tax rate from 10% to 20%. Normally, I would have no qualms about raising the capital gains and dividend tax rates. However, to use that money to fund a corporate tax cut, to me, was an absurd idea. The corporate sector in Japan was already flush with cash. The problem with the Japanese economy, I reasoned, was a lack of demand. Japan would get better results if they did the opposite of what the DPJ wanted. They should have taken money away from the corporate sector and given that money to individuals.

In INDB, I wrote the following in the notes for this article.1
AAARRRGGGHHH!!! NOT EVEN KEIDANREN LIKES THIS IDIOTIC PROPOSAL!!! I DON'T KNOW WHO THE FUCK LIKES THIS PROPOSAL!!! MAYBE THE ***pejorative for westerners*** LIKE IT!!! YAPPARI!!! KAN IS A ***pejorative for someone who does the bidding of the Europeans***!!! KAN MUST GO!!! SHOO!!! SHOO!!!
As the comment suggests, presumably, the DPJ made these tax reform proposals because America wanted them to. Presumably, America wanted to suppress domestic demand in Japan. Presumably, America thought the corporate sector in Japan would loan their newfound money to the U.S. government so we could go on another spending spree.

Trash till the end.

1 Needless to say, I edited the content of this rant. I didn’t want to give Google an excuse which would allow them to delete this post.

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