Kan Seeks Cuts in Japan's 40% Corporate Tax Rate

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TOKYO—Japan's new prime minister is pushing deep cuts in corporate taxes in hopes of spurring more business investment, even as he embraces higher income and consumption taxes to curb the country's mammoth public debt.

At 40%, Japan's corporate tax rate is highest among major nations—a longtime source of frustration among executives. Japan's disadvantage has been further highlighted in recent years as nations have raced to lower their tax rates in an increasingly competitive global business landscape.

A corporate tax cut would "strengthen the competitiveness of companies based in Japan and encourage investments by foreign companies," says the government's "growth strategy" ...

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