Taro Aso, secretary general of the ruling Liberal Democratic Party, said Saturday that stock dividends up to 3 million yen should be exempted from tax as part of efforts to stimulate the lackluster Japanese economy. ‘‘Top policy priority should be given to spurring the economy,’’ Aso said in a speech in the city of Sapporo. Aso said the proposed tax reform for stock dividends would encourage people to shift savings to investments. ‘‘I’m thinking about lifting all stock prices in Japan,’’ he said.He also proposed tax breaks for home purchases and capital investment to help stimulate the economy. Tax incentives are expected to be focal points as the government and the ruling coalition parties explore fresh measures to spur the economy, observers said. Under the current tax system, 10% of a stock dividend is withheld at source as tax. The current tax rate, half of the original 20%, was applied from fiscal 2003 as a temporary tax incentive for a five-year period to bolster sagging stock markets.
Most people do not own stocks. I'd like to know what Aso's plan is to help regular and poor people in this struggling economy. His plan sounds like more Koizumi-economics.
Justin
