Abenomics Litmus Test Looms as Pressure Mounts on Taxes
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Prime Minister Shinzo Abe faces rising pressure to expand tax relief for Japan’s companies after the longest slump in business investment since 2009, setting up a potential battle with the Finance Ministry.
Officials will unveil tax breaks for capital spending in coming months, according to all 17 economists in a Bloomberg News survey -- a step Finance Minister Taro Aso has backed. Aso opposes a broader cut in corporate tax rates, even after a slide in investment since the start of 2012, and his ministry has a history of shielding revenue.