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Gov't outlines fiscal stimulus to ease tax hike impact

19 Comments

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19 Comments
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The government is eager to avoid repeating the impact of the 2014 tax hike, which saw domestic demand collapse and caused Japan's economy to fall into recession just as it was recovering.

What do you think "taxes" are? Abe is begging for another collapse and no matter how much he tries to sugar coat the poison, it's still poison!

8 ( +10 / -2 )

"the tax hike is "absolutely necessary for fiscal consolidation..."

What exactly are the benefits of "fiscal consolidation"? And is it worth it to tank the whole economy for the sake of this vague, abstract concept?

9 ( +10 / -1 )

Low-income households or those with children aged 2 and under will be eligible to use shopping vouchers with enhanced purchasing power.

Introducing food stamps, like in the US...

All it means to me is poverty is on the rise.

8 ( +9 / -1 )

How long will people remain docile one wonders

8 ( +10 / -2 )

Our youngest is six, so we'll have to aim for being low income!

The genuine poorest will be hand to mouth, so they mightn't have the cash for a twenty thousand yen voucher redeemable for twenty-five thousand. Poor people do not pay for things in advance.

7 ( +8 / -1 )

So the car industry and construction companies get a bonus, the poor that would be 60% of the work force on low income, short term contracts, some crumbs and a lifetime increase with out a wage rise? Meanwhile the government increases its spending, increases national debt. Quality of life getting harder to achieve, it would appear the drivers of this bus are drunk.

5 ( +6 / -1 )

Low-income households or those with children aged 2 and under will be eligible to use shopping vouchers with enhanced purchasing power. The vouchers, to be issued by municipal governments, would, for example, be available for 20,000 yen but be worth 25,000 in goods and services when used at local stores.

What constitutes low income household? And where would people be able to get these vouchers? And don't tell me again that this tax hike is to give Japan a better economy because its BS. CUT THE FAT at Kasumigaseki first!

5 ( +6 / -1 )

The stupid govt can't tell the wrong hole from the right hole, ending up using both holes.

4 ( +6 / -2 )

Abenomics = incompetence & failure!

4 ( +6 / -2 )

Introducing food stamps, like in the US...

No what they are talking about is something that was already done here. Locally, from the municipalities that choose to participate, will give people the opportunity to purchase discount coupons that can be used locally only, to buy goods and services.

As an example, like in the past, people would buy these discount books for 20,000 (or whatever amount they are being sold for locally) and be able to purchase 25,000 yen worth of products or services in the local community!

These ideas and programs will just offset and delay the impact, as they are ALL only scheduled for a limited time according to last evening's 9PM NHK news. Up to 9 months or so.

All the ideas should be formalized my the end of next month.

-1 ( +2 / -3 )

Stop gap solutions to a permanent problem. Stupid is as stupid does.

3 ( +3 / -0 )

Didn't Premiun Friday's and a diet of cup noodles get us out of recession last time? Of course changing the legal limit of unpaid work to 100hrs helped. But I and the Government don't truly believe the population has given enough yet, may I suggest a no food Wednesday, sorry Premium No Food Wednesday. That should help. We all have to bear the burden to make the government comfortable in their bubble.

3 ( +3 / -0 )

Raising government revenue is obviously necessary given the state of the national debt.

But raising the consumption tax again is a horrible way of doing it. Despite the exceptions, this will disproportionately fall on the shoulders of the poorest members of society who can least afford it.

Raising income taxes on upper earners would be a much fairer way of increasing revenue without screwing the poor over (and destroying consumption, contradicting the government's key economic objective).

Oh and this:

which include tax cuts for car owners

pisses me off to no end. Raising taxes on everything that we need to survive becuase the government needs while lowering them on car purchases is just wrong on so many levels....

4 ( +4 / -0 )

Increase income and inheritance tax for the richest. Anything else will almost certainly cause a contraction in the economy.

-1 ( +0 / -1 )

It's no surprise that Abe's Keynesian ideas are abject failures. Socialist economics always fails every time.

0 ( +1 / -1 )

How about cut spending by 5 trillion, rather than spend more, in a futile, vain attempt to micromanage the economy through a tax rate increase that is going to be greatly watered down as it is?

What exactly are the benefits of "fiscal consolidation"?

Reduced risk over the long term (foreign concept to some) of Japan going through a deleterious fiscal meltdown at greatest cost to those at the bottom.

And is it worth it to tank the whole economy

It’s not going to tank the economy. Is the economy tanked today? No, you seem to argue otherwise. And yet just 4 years ago there was a tax rate increase.

What is this vague, abstract concept of “tanking the economy”?

If they are to raise the tax rate, they should just raise it and be down with it. If there is a short term swing in the economy, duh - everyone can see it for what it is. Just deal with it like adults.

Fiscal reconciliation is more important.

0 ( +0 / -0 )

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