Small Investors Won’t Be Hurt by Japan Tax Reform, Lawmaker Says
- Review of capital gains tax focused on high incomes, Kato says
- Panel must communicate its thinking to the market properly
Katsunobu Kato, former Chief Cabinet Secretary.
Photographer: Kiyoshi Ota/BloombergThis article is for subscribers only.
Discussions of changes to Japan’s financial capital gains tax are aimed at rectifying perceived unfairness and won’t hurt people investing small amounts, according to a senior member of the ruling party’s tax panel.
“The root of the problem is that salary and financial capital gains are taxed differently, which leads to the ‘100 million yen ($876,200) wall,’ where the tax rate falls off sharply at that level,” former Chief Cabinet Secretary Katsunobu Kato said in an interview at his office Thursday. “It’s all about how to deal with people on high incomes and distribute the tax burden fairly.”