politics

Consumption tax hike may be delayed depending on June data: PM aide

37 Comments

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37 Comments

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I prefer not to pay an extra two percent on anything.

10 ( +10 / -0 )

just a guess but they could probably cut 2% of wasteful spending on golf trips and private planes instead of raising taxes. things are expensive enough already here

12 ( +12 / -0 )

The consumer tax should be raised as planned. If not, Japan cannot raise the consumer tax forever. 8% to 10% is not a big increase. Japan is broke.

-4 ( +5 / -9 )

If the tax goes up 2%, I'll just spend 2% less than I do now. Easy peasy.

8 ( +9 / -1 )

Just raise the minimum wage to at least 1,300 yen per hour in line with other developed countries and people won't be worried about an increase in consumption tax. Doesn't the government realise that a higher minimum wage will give more income tax and enable people to pay their pension payments and health insurance which the government is struggling to get.

7 ( +8 / -1 )

Definitely backwards we all have to pay more to give beauracracts, politicians a stable income. How about they lower their luxurious life style? Never happen I know. They are special and should not have to suffer.

8 ( +8 / -0 )

The consumer tax should be raised as planned. If not, Japan cannot raise the consumer tax forever. 8% to 10% is not a big increase. Japan is broke.

You basically nullified your claim. How can people pay more if they're broke?

3 ( +7 / -4 )

Even 10% will not be enough. Japan will still not balance its National Budget and it will continue deficit spending. Not that they want to, but Japan's infrastructure costs a lot to maintain along with healthcare. The idiot running the USA is increasing Deficit Spending despite a very strong economy. No one seems to care about increasing government debt anymore. That said, it will all come crashing down at some point... but my guess is it could take another 20 to 30 years before that actually happens.

3 ( +6 / -3 )

You basically nullified your claim. How can people pay more if they're broke?

No. The clear reading of the post meant the government is broke, not the Japanese people. Come on, Walter.

2 ( +4 / -2 )

Consumer spending hasn’t recorded since it dropped dramatically after the 2014 consumption tax hike . Raising the rate to 10 percent in this economic condition is sheer madness. I hope the government comes to senses and scrap the planned tax hike altogether.

4 ( +4 / -0 )

We will probably see Mr. Hagiuda’s resignation in the news very shortly...

4 ( +4 / -0 )

"...... that (the Japanese economy) is moderately recovering ....." (Suga)

To prevent a further recovery (if possible at all) raise the consumption tax, so people get less for the money they make.

Now this makes sense (NOT!). As others have said, first of all cut the wasteful spending all over the place.

Reduce the money those law-makers get every month!

And if you raise the tax, use the "extra-money" where it is needed!

2 ( +2 / -0 )

The PM's aide is not what you would call a reliable source. He will likely be fired for making such a claim. The tax hike will go ahead as planned, which will have a negative affect on Japan's economy further driving down deflation. When the first tax hike was introduced consumer spending dropped by 10-25% depending on the sector and has never recovered. It resulted in price increases of 10-20% and stagnant or reduced salaries. Corporations were given huge tax cuts to increase the size of their coffers at the expense of the working class. The corporations and bureaucrats are getting richer at the expense of the middle class workers. The middle class is shrinking and the lower class is expending. If these economic policies are not stopped, Japan will return to a country of 'us and them' (bureaucrats and commoners). There will be no middle class. Japan is not broke, but the bureaucrats do not want to open their coffers and share their wealth with the commoners. Instead, they keep bleeding the commoners to keep their coffers full. TIJ!

6 ( +6 / -0 )

The end of our elaborate plans, the end. Of everything that stands, the end. No safety or surprise, the end. Driver where you taking us?

3 ( +3 / -0 )

Audit Olympics! Random countries audit the books of other countries. The country with the least wasteful spending wins.

2 ( +3 / -1 )

8% to 10% is not a big increase

Actually, it is ...25% to be exact.

How long does it take someone in Japan in a typical job to earn 25% more in wages?

7 ( +8 / -1 )

"The PM's aide is not what you would call a reliable source. He will likely be fired for making such a claim. "

Ne he would not. It is common in politics to float a trial balloon on proposed policy change to gauge public and market reaction. The fact that aide is floating it means that the government is having second thoughts about the tax hike.

2 ( +4 / -2 )

Yes, let's rely on the "data," bookcooking and inaccuracies or not. Let's ignore the conditions on the ground as experienced by the people living, working and dying in this country, which are increasingly poor to desperate. Let's just continue to elect they same patrician lords who are chauffeured about by drivers in white gloves. If only it was in gilded carriages perhaps people would catch on.

5 ( +5 / -0 )

Cut spending, cut government jobs, cut sales tax. You'll get workers for the private market and inflation. 2 things Japan needs.

4 ( +4 / -0 )

We have only two choices. To raise the consumer tax or cut welfare. Half of our national budget goes to welfare in Japan. People are living far longer than the government expected. I have to die soon to save the government and reduce the burden of the coming generations.

2 ( +3 / -1 )

I'm with Chip Star here ( ! ) I prefer not to pay another 2% on anything either.

If the tax goes up 2%, I'll just spend 2% less than I do now. Easy peasy.

A lot of people will do that, and there goes the economy down the toilet. This is gonna hit a lot of people hard.

4 ( +5 / -1 )

Chief Cabinet Secretary Yoshihide Suga said there is no change in the government's position that the tax will be raised unless Japan's economy faces a shock on the scale of the global financial crisis triggered by the 2008 collapse of U.S. investment bank Lehman Brothers Holdings Inc.

So basically, the tax hike will go on as planned. It might not be a collapse but definitely the economy will get a huge hit and will slow down after the hike.

4 ( +4 / -0 )

I wonder when the Japanese population will react on Abenomics?!

It’s not working till day one.

Mostly everything he is doing isn’t helping Japan at all.

7 ( +7 / -0 )

I really, really, really trust govt economic data. They would never, never, never even think of falsifying it.

3 ( +4 / -1 )

This is a no brainer. If you're going to raise taxes on people, you should also significantly raise the minimum wage. Simple.

I wonder when the Japanese population will react on Abenomics?!

> It’s not working till day one.

> Mostly everything he is doing isn’t helping Japan at all.

exactly.

3 ( +3 / -0 )

The OECD publishes its estimates of total population employed by various countries ‘ governments. The latest I found for Japan was 12.9% for 2014, so a rough calculation is a bit over 16 million people. The International Labor Organization estimates it at 10.9% for the same year, or almost 14 million. I don’t know what all these people do, but their pay, benefits, etc. is being funded by YOUR taxes. My guess is that the productivity of these folks are extremely low (just visit your local ward office). Hey, I know, give Carlos Ghosn a suspended sentence and have him turn around the government.

2 ( +2 / -0 )

I wouldn't mind paying more tax if I had any confidence in how the money was going to be spent. For example, I pay a fair whack in 市民税 but at least I can see the effort being put in by the local government to make our town more livable. I don't agree with everything they do, but I can see planning, engagement with residents, and implementation, so I don't begrudge the money.

On a national level, it feels like throwing money down a well. I have no idea how the extra tax income will be spent because I rarely see any correlation between what the government says they are going to do and things that actually get done (the casino vote is the only exception that comes to mind).

2 ( +2 / -0 )

Why? Why are those in charge so clueless? Want inflation raise the minimum wage. Want more tax payers raise the minimum wage. Instead of addressing over work raise the limit that's unenforced anyway. 60% of the work force that attributes 60% of the economy are on low wages and temporary contracts! It's pretty obvious where the elite show concern, reducing corporate tax urge wage rises and Shogani. Toyota don't pay any tax, why should my tax increase? As the illustrious finance minister said " premium" cup noodles for all. Who wants a fridge when all you need is its box to live in.

4 ( +4 / -0 )

Delay? Just get rid of it.

5 ( +5 / -0 )

As the population pyramid becomes inverted, we’re all going to see increases in income tax, sales tax, inheritance tax, alcohol/tobacco tax, social security tax, and you name it. I guess as long as you know this is inevitable and can accept it, given your stage in your life, your financial situation and your satisfaction with Japan as a place you want to grow old in, I guess that’s okay.

4 ( +4 / -0 )

@bear. You can’t increase inheritance tax. It is now 50%and a bloody big windfall in the waiting.

next will be a cashless society with 5%tax on all transactions.

2 ( +3 / -1 )

We have only two choices. To raise the consumer tax or cut welfare. Half of our national budget goes to welfare in Japan. People are living far longer than the government expected. I have to die soon to save the government and reduce the burden of the coming generations.

That's the crux of the matter. Rather than just parrot stuff about "bridges to nowhere", look up a pie chart of actual government spending. Most of the money is going on welfare, not on construction. The Olympics, maglev Shinkansen etc. do not help, but they are small beans compared to social spending. Either people pay more for medical costs, more for care homes, more for schools, more for daycares, or they pay more in taxes. While government debts are not household debts, the analogy is bogus since the government has a money printer, a large chunk of current tax intake simply goes on servicing the existing debt with no visible benefit to the taxpayer. This means that the debt is real and has a biting cost.

I write all of this as a socialist who is fundamentally against regressive taxes like this one. If there is blame, it should go on prior governments for running up huge debts instead of a sovereign wealth fund during the good times.

4 ( +4 / -0 )

They should've done it all in one fell swoop back in 2014 from 5% to 10%.

Their halfway measure to 8% hurt the economy anyway, but we would've been out of having this big dark cloud hanging over us with the remaining 2%.

Just do it for Christ sake. (Or reduce your insanely wasteful spending.)

2 ( +2 / -0 )

Prior Government LDP, and before that Prior Govenment LDP Same families same goal propping up the sence of self entitlement. And I can say that my "Premium" cup noodles tast fantastic on my "Premiun" Friday.

2 ( +2 / -0 )

I really don't want to rain on the ruling LDP governments parade, frankly I have lost count how many promises and pledges have been announced, free preschool, all children 3 to 5 eligible, irrespective of their parents' income, revenue in the region 1.7 trillion yen expected from this 2% consumption tax hike.

Consumption tax by definition, will affect large families disproportionately.

Comprehensive Tax reform proposals need to be fully implemented. From corporate tax reorganisation, relaxation for the earns stripping rule, incentives for SME business etc etc

Most of all careful consideration given to the bottom 25%, plus a full review on government spending. Honesty, some will have to contribute more, also some benefits could be subject to means testing

3 ( +3 / -0 )

I'll just show my passport and get is tax free. Problem solved.

-2 ( +1 / -3 )

Nippori NickToday 08:24 am JST

8% to 10% is not a big increase

Actually, it is ...25% to be exact.

How long does it take someone in Japan in a typical job to earn 25% more in wages?

The tax itself increases 25% but the price will increase by a mere 1.85%.

 This 10% tax has been decided a long time ago, already been delayed, and instead of doing it in once from 5 to 10%, doing it in 2 steps, 8 then 10%.

When the Jiminto took again power from Minshuto, Abe promised not to change the plan, but he did and already delayed it. A PM must keep its promise and not change to gain votes. It is a question of trust and power. Certainly citizens approve a delay as they just see their wallet, but for me, a lack of trust toward a government. This story has been on for years, and an increase from 8 to 10% is not a big deal. It is more symbolic to reach the 2 digits than anything else.

In my country, VAT is 20%.

0 ( +1 / -1 )

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