Japan LDP leadership hopefuls spar over higher investment income tax

TOKYO -- The idea of imposing a heavier tax on investment income from such sources as dividends and stock trading has returned as a point of contention in this month's race for the presidency of Japan's ruling party.

Japan taxes personal financial income at a flat 20%. This results in a lower effective tax rate for more affluent people who tend to derive a larger share of their overall income from investments, with the tax burden tending to drop off sharply beyond 100 million yen (about $690,000) in annual income.