Japanese Prime Minister Shinzo Abe has cleared another hurdle in his efforts to revive his country’s economy with the ruling Liberal Democratic Party agreeing to a cut in the corporate tax rate, the Wall Street Journal reported Tuesday.
Details of the cut have yet to be determined but the party’s tax panel said it would allow the reduction to go into effect in April 2015, the report said.
The corporate tax rate is about 35 percent and big companies have long said that they bear an unfair share of the tax burden.
But skeptics say lower taxes might not do much for investment because many big companies are sitting on large cash piles, the report said.
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