I wonder if people will even notice this and if they do will they know that Japan lowered their corporate tax rates from 40% to 35% this year. Their minimum wage has a range from $8 – $10.50/hr based on industry and I believe age. I am a firm believer that the Govt. would generate more revenue if they lowered the corporate tax rate.
From BBC News:
Japanese wages unexpectedly logged their strongest increase since 1997, providing a boost to the government’s battle against deflation.
Labour cash earnings rose by 2.6% in July compared to a year ago, beating forecasts of a slowdown to 0.9%.
Special payments, or summer bonuses, grew by an annual 7.1% in July from a revised 2% gain in June.
However, some economists warn that wage growth is set to slow in coming months.
“The summer bonus season ends in August, and bonus payments are set to fall sharply. As a result, the growth rate of overall earnings will mostly be driven by changes in regular pay,” Marcel Theliant from Capital Economics said.
“With base pay expanding clearly less rapidly than bonuses, wage growth will likely slow again in coming months, but it should stay in positive territory.”
The data suggest that some firms are raising wages, which is crucial to improving Japan’s overall economic performance.