business

Japan business lobby urges sales tax hike to proceed as planned

7 Comments
By Tetsushi Kajimoto and Takaya Yamaguchi

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7 Comments
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I still don't understand why they didn't opt for a less impactful graduated increase, perhaps a .5% increase each year or two until 2% is achieved, rather than a more painful sudden 2%, which they've been postponing all this time due to its assumed impact. They could have been collecting at least some increase in revenue all this time, and making the eventual 10% tax easier to swallow.

2 ( +2 / -0 )

@garypen

I am guessing it is because the government is also worried about the rate of growth and amount of its debt. They are making a huge assumption that with this huge increase, the rate of spending and growth would remain at the same level or similar levels and would allow the government to tackle its debt issue more quickly without impacting other government programs.

However, a huge hike in the sales tax rate along with shrinking salaries sounds more like a recipie for disaster.

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Corporate fat cows with short term vision welcoming the increase consumption tax due to the anticipated spike in demand but forgeting that demand will drop drastically when the tax sets in.

4 ( +5 / -1 )

Lower income families are unfairly hit by the proposed tax in its current form. Food, particularly healthy food, should not be taxed any higher. A further rise of the consumption tax should target luxury goods.

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automate the government and reduce cost to taxpayers!

4 ( +4 / -0 )

The corporates are being typically disingenuous. The real reason is they don't want to shoulder any more of the social security expenses by having their corporate-tax cut rescinded. They want the job of funding it to be shifted to the general population as much as possible.

3 ( +4 / -1 )

they don't want to shoulder any more of the social security expenses by having their corporate-tax cut rescinded. They want the job of funding it to be shifted to the general population as much as possible.

Well said. Kudos!

Companies have used almost nothing of their windfall from the corporate tax cut to boost wages/salaries. They pocket the cash, stiff their workers, and then demand that the public fork out more for the pension system.

And then the government pumps the revenue from the sales tax hike into pork barrel projects to "offset" the negative impact on consumption.

Scam.

1 ( +1 / -0 )

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