Japan has a national debt amounting to 250 per cent of its gross domestic product and, as its fiscal deficit is running at about 10 per cent of GDP, the ratio is rising rapidly. At some point this will cause a crisis. What cannot go on for ever will stop; when I do not know, but Japan does need to start bringing down its budget deficit and it will not be able to do this unless it reforms its corporate tax system and, in particular, brings down sharply the allowance allowed for depreciation. Read more