Japan Corporate Tax-Cut Plan to Hurt Smaller Businesses

Prime Minister Shinzo Abe’s efforts to lower Japan’s corporate tax rate are increasingly set to include steps to ensure more businesses pay at least some levies, a move that endangers the survival of a swathe of smaller firms.

Abe, who stepped up political pressure for a cut with a January speech in Davos, Switzerland, faces opposition to the move among lawmakers concerned at the hit to fiscal revenue in the nation with the world’s biggest debt burden. Government advisers are floating making companies pay taxes on capital and salaries, in addition to profits -- currently only applicable to those with capital exceeding 100 million yen ($980,000).