Prime Minister Shinzo Abe pledged Friday to reduce the 35 percent corporate tax rate to under 30 percent in the next few years in an attempt to boost foreign investment and bolster the economy.
Abe also said that his administration will secure other financial resources to cover the resulting drop in tax revenue but did not specify how.
"We will make a growth-oriented reform of the corporate tax system," Abe again vowed, expressing hope the tax cuts will improve employment and Japan's quality of life amid a consumption tax hike and wages that aren't keeping pace with inflation.