What could be done to lower private surpluses?

Unless private sector surpluses fall, the planned increase in the sales tax in 2019 will result in weaker domestic demand. Incentives to increase investment spending or lift dividend payments would lower the corporate surplus. But Japanese firms already invest a lot and the majority of shares are held by overseas investors, banks and other non-financial firms. We believe that the focus should be on encouraging firms to lift wages to boost household spending.