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Politicians in Japan are divided over whether to hike taxes to finance reconstruction efforts or take steps first to spur economic growth and then use that as an engine for reconstruction. What is you

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Make a freaking choice!

0 ( +1 / -1 )

It's a difficult choice. While the immediate need is for reconstruction, I think raising taxes now would be devastating for the economy. People need to spend money. If there is a tax hike, we have less disposable income and we don't spend. This leads to a deflationary spiral and everybody loses.

0 ( +1 / -1 )

They should lower their salaries. Get rid of that excessive training of jet fighters that costs us millions, just for an air show. Drive around in normal cars instead of Lexuses. Raising taxes now would be the biggest mistake.

0 ( +1 / -1 )

As a Socialist I understand and support the need for high taxes but I am beyond tired with people earning ten times more money than I make demanding that I be more generous in order to pay for their promises. The public should demand a fairness clause; for every 1 percent that taxes are raised, politicial salaries, staff, expense accounts, etc. should be cut by 1 percent and these cuts should remain as long as the tax increases continues.

0 ( +1 / -1 )

Raising taxes now is akin to economic suicide, reduce govt spending on bloated departments, cut back on politicians salarys and other gratuitous spending they persist in doing.

Simple economics it isnt hard to see, but these numb skulls have no clue.

Spur on the economy not hobble it.

0 ( +1 / -1 )

Raising taxes now would be disasterous. But my bet is that this is precisely what the new administration will do once in power.

What is needed is a leap of faith. Japan's infrastrucutre (train stations, roads, bridges, ports, hospitals, schools etc...) are all aging. Many are over fourty years old. So one very solid idea would be to enact a Japanese "New Deal" and launch a program to rebuild these things nation wide. And to do so with an expressed policy of working with smaller businesses to conduct the work. Thus encouraning growth of the small businesses while encouraing employment.

In theory the investment should come back to the nation in the form of tax revenue from increased employment and business activity.

I recently heard a speech where the analyst said that we need more middle income people, not more rich people. So let's launch a policy that restores working people to the middle and that creates more opportunity for others to move to middle class status. These people will buy housing, will have kids, send them to school, consume, invest and help start new business as well. A New Deal is exactly what Japan needs.

2 ( +3 / -1 )

I do not think that a moderate tax hike will be so disastrous. In comparison with European countries, taxes in Japan are nothing but a joke. They could introduce a solidarity tax for a few years in the regions which were not directly affected by the triple disaster. I do not think that this would be too harmful for the economy.

But I completely agree with tkoind2 that Japan needs a "new deal" or something of that sort. Even without such a decision, rebuilding Tohoku can created tens and hundreds of thousands of new jobs in Japan, if it is done in a well planned manner, which focuses on small local companies. Which would also help reviving Tohoku.

0 ( +1 / -1 )

Just today, we read about Tokyo Education Board members who get close to half a million yen a month to turn up to a 1 or 2 hour meeting to discuss cutting the pay of teachers who've been bad and such. Only thing is, they still get paid even if they can't be bothered to turn up. That's more than 5 million a year they get for doing close to nothing. Cut the pay of all these useless mumbling chair warmers by 80%, and then CUT income tax rates across the board to stimulate the economy.

1 ( +1 / -0 )

Japan already takes enough taxes. You have income tax, consumption tax, vehicle taxes, property taxes, inheritance taxes, citizen taxes, special additional tax on fuel etc. And on top of that, they have clawed back people's pension money.

1 ( +1 / -0 )

Japan and the U.S. are vying for 1st place in "highest corporate tax rate". Who will win, they both seem to want the prize so desperately. And then we are all shocked and indignant when headquarters are relocated, and jobs are made in other countries. Even Apple, our quintessential "American" success story - manufactures iPads in - wait for it ... (not the U.S. or Japan).

0 ( +0 / -0 )

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