Japan ruling LDP eyes shifting 1% of income tax payments for "defense tax"

The tax commission of Japan's ruling Liberal Democratic Party agreed Wednesday to allocate about 1 percent of current income tax payments to a new "defense tax" as part of efforts to fund a planned increase in the country's outlays for national security.The LDP panel affirmed a draft government plan to cut by half an additional 2.1 percent imposed on income tax payments to aid the reconstruction of areas affected by a massive 2011 earthquake and tsunami, channeling some 200 billion yen ($1.5 billion) a year to the new tax.With the plan, the amount allocated for recovery in disaster-hit area…READ FULL ARTICLE