Group: GPA4.0 (Jian Zhao, Li He, Mengying Wang, Lili Lin, Shuqian Yang, Haoyu Gu, Lijie He, Jinchen Hu, Yuanbo Lin)
Charity-Joy Acchiardo
ECON 340
October 12, 2015
Policy Proposal: Tax Reform Package in Japan
Japan has remained in an extended period of stagnation for over a decade, since 1992, leading to a massive drop in per capita income. Consequently, the economy that stood to threaten the global markets in competition developed fragile pillars that affected the course of investments in the nation. As a member of the OECD area, Japan regained a steady growth trend after 2002 that saw a notable improvement in its GDP. Nonetheless, this upward course was reversed in the recent Great Depression that plagued the world markets in 2008. However, …show more content…
This scheme aims to work as the ultimate solution in guiding Japan towards recovery from its economic setback. Evidently, the corporate tax of Japan is the highest; thus, the country cannot engage in further corporate tax raise as this will further burden the business sector. The option of consumption charge rates is also a worrying platform. However, with the proposed comprehensive tax reforms, all the components of taxation will aid in the generation of extensive revenue for the country. Moreover, due to inequality in the income rates, it is also considerable to engage the levying on the basis of revenue. This will eventually translate to a rise in income tax. Although this in its singularity is applicable, it will not combat the entire problem. However, the proposed comprehensive levy reform policy will combine all these three options, that is income tax, corporate tax and consumption tax, and evaluate their potential in addressing the revenue concern when combined. This move will lead to a comprehensive levying package that covers the interest of all sectors in equal measure, facilitating the solution of the budget deficit in Japan due to low
Charity-Joy Acchiardo
ECON 340
October 12, 2015
Policy Proposal: Tax Reform Package in Japan
Japan has remained in an extended period of stagnation for over a decade, since 1992, leading to a massive drop in per capita income. Consequently, the economy that stood to threaten the global markets in competition developed fragile pillars that affected the course of investments in the nation. As a member of the OECD area, Japan regained a steady growth trend after 2002 that saw a notable improvement in its GDP. Nonetheless, this upward course was reversed in the recent Great Depression that plagued the world markets in 2008. However, …show more content…
This scheme aims to work as the ultimate solution in guiding Japan towards recovery from its economic setback. Evidently, the corporate tax of Japan is the highest; thus, the country cannot engage in further corporate tax raise as this will further burden the business sector. The option of consumption charge rates is also a worrying platform. However, with the proposed comprehensive tax reforms, all the components of taxation will aid in the generation of extensive revenue for the country. Moreover, due to inequality in the income rates, it is also considerable to engage the levying on the basis of revenue. This will eventually translate to a rise in income tax. Although this in its singularity is applicable, it will not combat the entire problem. However, the proposed comprehensive levy reform policy will combine all these three options, that is income tax, corporate tax and consumption tax, and evaluate their potential in addressing the revenue concern when combined. This move will lead to a comprehensive levying package that covers the interest of all sectors in equal measure, facilitating the solution of the budget deficit in Japan due to low