Japan considers raising top income tax bracket - Nikkei
Jan 17 (Reuters) - Japan's ruling coalition, led by the Liberal Democratic Party (LDP), outlined plans to raise the top income tax bracket to 45 percent from 40 percent, the Nikkei reported.
The LDP also suggests a higher starting point for the top bracket. Currently, income over 18 million yen ($201,300) is taxed at 40 percent, the business daily reported.
The government aims to reach an agreement with the opposition by the beginning of next week.
The new bracket will affect few taxpayers as Japan has only 43,000 income earners making more than 30 million yen and 14,000 making more than 50 million yen, the Nikkei said.
The government under the Democratic Party of Japan (DPJ) proposed a 45 percent rate for income above 50 million yen ($559,200) last year.
LDP's ally, the New Komeito party, has called for a 45 percent rate for income above 30 million yen ($335,500) and 50 percent for income exceeding 50 million yen.
The ruling coalition has also decided to back the DPJ government's proposal to raise the estate tax ceiling to 55 percent from 50 percent.
This tax would apply to the portion of inheritances exceeding 600 million yen ($6.71 million) each for a spouse or offspring, affecting only the wealthiest families in Japan. ($1 = 89.4100 Japanese yen)
(Reporting by Sayantani Ghosh in Bangalore; Editing by Don Sebastian)