Prime Minister Fumio Kishida is following last month’s record economic stimulus package with a move to boost worker pay as part of his campaign to revamp Japanese capitalism so prosperity is shared more widely and growth is more sustainable.
The ruling party on Friday is set to unveil a set of carrots and sticks that use the tax code to try to coax businesses into raising worker pay and punish those that don’t.
The promised tax breaks are roughly 50% more generous than ones already on the books, according to a draft of the Liberal Democratic Party’s tax plan for fiscal 2022 seen by Bloomberg.