Why Japanese Stocks Are Moving Up Again INCOME TAX CUTS The Liberal Democratic Party has put in place a one-time $15 billion income tax cut and likely will extend it. CORPORATE TAX CUTS The government will cut Japan's 50% corporate tax rate by a modest $3 billion. Economists worry that the reduction is insufficient. BANK BAILOUT A $240 billion package will be assembled to help Japan's debt-laden banks. But shoring up weaker players will only prolong a much needed shakeout of Japan's overcrowded banking sector. SHARE BUYBACKS Japanese CEOs want more freedom to buy back corporate stock and dismiss surplus workers. As much as $16 billion worth of shares could be repurchased by next year, buoying the stock market. Return to main story

Updated Jan. 29, 1998 by bwwebmaster
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