By William Rice, Americans for Tax Fairness
Big corporations and their political allies like to claim that cutting corporate taxes would somehow be good for everybody, not just top executives and wealthy shareholders. But a recent story out of Japan offers a cautionary tale of who really picks up the tab when corporations duck their fair share.
Elections over the weekend strengthened the governing party’s grip on power, and Japanese corporate executive are now promoting cuts in corporate taxes and regulations (sound familiar?). But a Bloomberg story notes a potential hiccup:
“Lower corporate rates may draw criticism from voters, who are facing a higher tax burden as Japan plans to increase the national consumption tax in April, for the first time in 17 years, to 8 percent from 5 percent.
“[Prime Minister Shinzo] Abe said July 4 it’s necessary to increase the consumption tax because of rising social-security costs and the nation’s debt burden…
“The consumption tax needs to be increased to save Japan’s balance sheet,” Yorihiko Kojima, chairman of Mitsubishi Corp., said….”
So Mitsubishi and its corporate cohort consider Japan’s balance sheet worth saving—just not by them.