Japan's coalition government on Tuesday agreed to a tax reform that will cut the country's high corporate tax rate in an effort to spur growth in the sluggish economy. Under the deal, approved by Prime Minister Shinzo Abe's Liberal Democratic Party and its coalition partner Komeito, the tax rate will be cut to 32.11% from 34.62% in the next fiscal year beginning in April, and then cut further to 31.33% in the following year, according to media reports. The assumption is that lower corporate taxes will encourage companies to hire more workers, raise wages and increase investment. Earlier in the year, Abe announced a delay to a planned sales-tax hike.
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