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Japan to hike taxes on high earners, bringing in extra $890m

Income tax to rise for 3m workers, plus some pensioners, in 2020

About 5% of Japan's salaried employees, or 3 million people, would pay higher income taxes under a proposal likely to take effect in 2020.

TOKYO -- Japan is poised to raise an additional 100 billion yen ($890 million) in revenue annually from tax proposals that would slash deductions for high-paid employees but help freelancers and households caring for children or the elderly.

The plan devised by the ruling Liberal Democratic Party's tax panel was accepted in principle Wednesday by the prime minister's office and junior coalition partner Komeito. It reduces tax breaks for those making over 8 million yen while expanding the basic deduction for virtually all earners.

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