Getting economic growth in Japan
Hi Cullen, so you’re probably already aware about Japan’s economic situation and Abenomics and all that. Their tax rate currently stands at a high 50.84%, an increase set in place since 2013. They also have an abysmal 0.01% bank savings rate, though the Japanese have a higher propensity to save. Correct me if I’m mistaken, but if one of the reasons why Japan’s economic growth is slowing or stagnant is because of “ageing” demographics (and I believe immigration is mostly out of the question to address this), wouldn’t an income tax cut help boost demand side growth and inflation? Instead the government has proceeded with a tax cut for businesses, reducing it from 40.69% in 2011 to 32.26% in 2016. But to start a business, one needs capital. Hows there going to be enough private capital to go around if theres high income taxes, low savings rate, depreciating currency, and banks still being extremely conservative with with their credit allocations?
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