The Liberal Democratic Party-led government is in final talks to raise tax payments for employees who earn more than ¥12 million a year, by trimming tax credits.
In its tax reform outline expected later this week, the government will propose raising the income and residential tax payments for the wealthy, sources said Sunday. The government hopes to extend that in the future to include those who make ¥10 million per year.
At present, the maximum tax credit for those earning just over ¥15 million a year is ¥2.45 million. Under the proposal, that would be reduced to ¥2.3 million for those earning ¥12 million a year.