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 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.”
Prime Minister Fumio Kishida, who took office in October, has laid out ideas for a "new capitalism” that bolsters the economy by narrowing the disparities between rich and poor. He is seeking to leverage the tax system for that purpose.
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