As the government intensifies discussions toward compiling a fundamental tax reform blueprint next month, a new priority is emerging -- using tax breaks as a tool to revitalize the economy.
The question is whether the final blueprint will really help revive the faltering economy. Tax measures currently being studied include both cuts and hikes, leaving the public to wonder how it all will eventually affect them.
Last week, the Council on Economic and Fiscal Policy, a key government panel headed by Prime Minister Junichiro Koizumi, outlined a tax reform package that would run from fiscal 2003 through fiscal 2006. It calls for reducing individual income tax and corporate tax rates.