Japan Income Taxes and Tax Laws

Taxation of an individual's income in Japan is progressive.
In other words, the higher the income, the higher the rate of tax payable.

The tax rate for an individual in 2009 is between 5% - 40% There are reduced rates of tax for certain income earners.

Japan corporate tax in 2009 is currently fixed at 30% and, again, there is a reduced rate of tax for certain corporations it is important to point out that the effective tax, for individuals and corporations, is higher as a result of the other local taxes that exist in Japan.

Tax Highlights for U.S. Citizens and Residents Living Abroad

This article discusses in general terms some provisions of the U.S. federal income tax law that apply to U.S. citizens and resident aliens who live or work abroad and who expect to receive income from foreign sources.

As a U.S. citizen or resident alien, your worldwide income generally is subject to U.S. income tax regardless of where you are living. Also, you are subject to the same income tax return filing requirements that apply to U.S. citizens or residents living in the United States.

However, several income tax benefits might apply if you meet certain requirements while living abroad. You may be able to exclude from your income a limited amount of your foreign earned income.

Read the full article:  http://www.taxmeless.com/IRS593Publication.htm

Claim That Tax Cuts "Pay For Themselves" Is Too Good To Be True

Revised July 26, 2006

In recent statements, the President, the Vice President, and key Congressional leaders have asserted that the increase in revenues in 2005 and the increase now projected for 2006 prove that tax cuts “pay for themselves.” In other words, the economy expands so much as a result of tax cuts that it produces the same level of revenue as it would have without the tax cuts.

In fact, however, the evidence tells a very different story: the tax cuts have not paid for themselves, and economic growth and revenue growth over the course of the recovery have not been particularly strong.


Read the full article here