This paper aims to analyze the challenges and attempts of the business world and the business elite in modern Japan to exercise influence on the political decision-making process in relation to income tax reform. Particular attention is focused on the 1920s income tax reform, which is widely considered as a turning point by many Japanese historians, for instance in prompting major organizational changes in Japanese business. The paper discusses the strategy of resistance from the business side and governmental responses. It shows that while the outcome was an unsatisfactory one for the business elite it was also impossible for Japan’s government and bureaucracy in implementing policy to ignore political resistance in the Diet or from business interests.