OECD recommends tax hike for post-quake Japan*****

TOKYO, April 21 (AP): The Organisation for Economic Cooperation and Development (OECD) is recommending that Japan as much as quadruple its sales tax rate to deal with a crushing deficit that's bound to grow as it spends on reconstruction from last month's earthquake and tsunami. Economists in the group of the world's wealthiest countries said in a report released Thursday that the country should boost the sales tax, now 5 per cent, to as high as 20 per cent while cutting corporate taxes. OECD Secretary-General Angel Gurria says Japan has to perform a balancing act as it finances reconstruction following the March 11 disasters while sustaining its economic recovery and cutting debt. The OECD also recommends education system changes, freer trade with other countries and other reforms.