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The government is considering the introduction of a new tax to finance the huge costs of reconstruction in the Tohoku region following last month's earthquake and tsunami. What are your thoughts on su

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I'm not keen on another tax, especially since it will probably become permanent. The government already is planning to raise the consumption tax to pay for pensions. How much more taxation can we take? As it is now, I have almost no disposable income each month, so I can't do my bit to stimulate the economy.

Instead of a construction tax, how about cutting out all ODA for the next two years and using that money for earthquake recovery?

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It was inevitable. My bet is they wanted to increase tax, but a reconstruction tax is more voters' friendly than raising consumption tax.

Too bad they can't tax kick backs.

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I understand there was a temporal oil tax some years ago. What makes it temporal when it is even older than me. I'm afraid my grand kids would come to meet this 'temporal'Tsunami reconstruction tax

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It was inevitable and it will be permenant. Government is trying to finance this cost without getting in more debt to the public. Most probably it will be a separate tax and not an increase of corporate or consumption tax.

I believe Germany did a similar thing when they united with East Germany and charge the people some reconstruction tax.

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Governments dont have a endless supply of cash. Tax increases have a benefit as there is no need to borrow the money. Problem is, in a struggling consumer economy, any blanket tax increase will take cash away from small business and risk further downturn. Why not tax Tobacco. This product costs the economy Billions of Y though higher health costs...Its a double benefit. Encourage people to stop smoking, saving on Health Costs and increasing revenue to support reconstruction.

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tax tobacco! smokes are cheaper here than in any other advanced country. 440 yen for a pack??? i pay almost 3 times as much back home!

a new tax should be prorated. richer pay more.

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Legalize and tax MJ. Problem solved.

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Smartacus, I agree with you 100%. Cut the ODA for two years, and use this money to fund your own country. Yes I know that other nations are needy, but at this time so are your own people. Also why not a 5% cut of all public servants salaries? I think that it would be fair, and not hurt them that much, but take all of that money and put it right into reconstruction. For those who way it is not fair to target public servants, I am sure that they are still all getting paid, even those in the earthquake/tsunami hit areas. The same can't be said for private company workers.

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it's permanent.

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Japan should:

1) Leave the UN and use the money paid there for reconstruction. Funding UN soldiers to rape women in Africa is unethical anyway.

2) Cancel the pension system. There is no question on if it will fail, only when. Might as well face up to it now and move on and build a new Japan that isn't buried until debt.

3) Reduce corporate taxes to 25 or 30%.

4) Limit doctor visits for young, healthy people with colds or flu, except in cases where complications are statistically likely to arise. There's too much waste.

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I think that now, in the heat of the moment, everybody will not to this tax, because it has a humanitarian make-up. But, in the long run, it will cause serious damage to the already shaken Japanese economy. My bet is that now Japanese will save their pennies even harder than before. They do something to stimulate domestic spending, instead of creating taxes.

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This is such a shameless proposal, which does no good for people of Japan, or for those suffering from the disaster. Raising tax would only shrink the Japanese economy, the reduction of which might even reduce the gross tax revenue despite the stupid new tax added. The government should just issue bonds and at the same time liquidate some of its assets to come up with the relief fund. The diet can legally order the Bank of Japan to buy up the relief bonds. There is a good reason for it...

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I don't mind paying a higher tax for such things (I don't want to pay taxes for the arms race). But, I think the higher income people should take a little more responsibility to pay more taxes. Me, I living almost to the poverty level now. Hope Japan isn't like America in this sense. G.E. makes millions and doesn't pay any taxes. And the rich use loopholes to get out of paying taxes. Then they wonder why America is having problems.

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I remember when the so-called weight tax was imposed on automobiles in the 1960s to finance the construction of the high speed shinkansen tracks. This tax was supposed to be temporary too. We are still paying it more than 40 years hence. The national railways were mismanaged on an unbelievable scale raking up debts you can hardly imagine. Paying these off will take forever.

Another temporary tax? No thank you. I would agree with Everfeit. Issue bonds. The economy cannot take any more tax shocks. People would reduce spending even more.

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presto is right. this kind of thing is a chance to get an excuse to get more money from ppl, and it'll be hard to oppose it on some levels b/c the emotional reaction to Tohoku's troubles.

If they took all personal wealth of the president mother-ruckeph of Tepco and bankrupted him and did same to a few more top guys at that company, and fired several top nuclear facility inspector ppl working in the government who have let the nuke industry become as it is, and then nationalized TEPCO, they would probably start seeing a profit in a few years.

In any case do that, and I will feel a slight bit better about paying a tax. But business as usual don't go down easy.

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I know I am a broken record here but, STOP wasting/thieving the taxes we ALREADY PAY!

I figure that alone wud free up 20-30% extra, way more than any new ""temporary"" haha tax.

The govt is looking to take advantage of us all is we let this pass.

Eliminate amakudari(jail the lot & repo their pensions/bonuses!!), stop waste, stop kickbacks, do those 3 & there will be mountains & mountains of $$$$$$$$$$$$ THAT WE ALREADY PAID!

End of story, problem of financing SOLVED!

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Do not let this happen. It will depress the economy even more. There needs to be an accounting of all the millions of yen donated by foreign countries to the relief effort.

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I agree that ALL people living in Japan should contribute in one way or another to the reconstruction progress in Tohoku. It is our responsibility and everyone else's who either chose to live in this country or was born here. I really hope though that this crisis won't become an excuse to raise even more the taxes permanently.

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It's time to stop window dressing robbery and call it like it is: mandated benevolence.

Taxing people who now are already taxed enough, "for the better of your fellow man" ?

Add the consumption tax hike, the power surcharges, and Japan will become one damned depressing place to live and work; most won't have expendable cash, and this is never a good thing.

Japan, just say "NO"!

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I already posted here 2 months ago that the price and tax increases this year will be bad.

You know how it goes "Grab your ankles because here it comes again".

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People, it will most probably be tax. Forget the bonds.

I am looking at the comments here. You have to keep in mind that the Japanese government does not want to issue more bonds. They already have the world's largest public debt. They do not want to increase it. They also have a shrinking population and will face the pension burden in quite a short future, which will strain their resources.

This new indebtness resulting from the nuclear fallout will last a long time. Noone right now would want to issue new bonds on top of the existing obligations.

So it will most probably be a new tax unless they can think of some other creative way and it will most probably be permenant.

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In the name of reconstruction, the govt is working on it's own hidden agenda. This always happens whenever there is a crisis, they will be the first people to jump into it and take advantage. Same way people sell their own freedom and values in the name of protection. There is more than enough money for the reconstruction. Cut the Military spending. Some projects going to the criminals have no meaning at all apart from sucking the resources from the poor population. where did all the money that the aged population paid in the name of pension go to? Also, they don't mention that over 40% of the population is no longer paying pension, due to lack of trust, after the scandal involving the pension funds. If they increase the Taxes, will they also increase the Salaries of the underpaid employees? Leaves me with lots of questions.

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In the name of reconstruction, you will lose your freedom, rights and become more enslaved in a system that only benefits a few. When they built the nuclear facility, didn't they ever think of the repercussions? They have been making lots of money since the plant was built, where did all that money go to? The Govt lies to the people while protecting the criminals who fund them, and the public is so dumb to sell themselves at a very cheap price......

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So this is the end? How long can the Ponzi scheme here stay afloat? Japan's dept is enormous. Supplementary budget after supplementary budget has meant only more and more paper money. Just look at where gold and silver are going. And now an actual crisis. Oil is set to rise and this time gov has said they will not reduce the gasoline tax so you will take the hit. An increase in the consumption tax? Add to that this proposed special new tax to pay for the special new "disaster bonds"? Come here inflation I want to bite and kiss you. The lenders aren't worried. The banks are sitting on the trillions that's already been dolled out over the past few years. Go at it boys, it'll be a great day for shopping soon. It's reported Dev Bank and Shoko Chukin will share in ¥3 trillion (to start) received at 0.5%. If a man can't pay his mortgage because the sea washed his livelihood away that sucks. If you're the bank that lent him the money you'll get his house - and bundles of cheap cash from BOJ to buy up his neighbours, to buy up the markets while sinking the economy. So for me, no i think a new tax is not a good idea. The argument for precious metals however has never been better.

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In light of the next potential crisis I've already restocked my supplies of food, water and other non-perishables (pre-tax increase, of course). These are interesting times.

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It was gonna happen anyways sooner or later, now they have a great excuse! So we really can't complain since it was inevitable, nor can we say it's a good thing because it just means they will spend more until they need to raise it again.

As usual, the problem isn't the tax level but that we are addicted to spending every penny we tax plus more.

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