Gov't begins week of hearings on planned sales tax hike

Pls do not waste time and money, go ahead with tax hike which Abe and his team has already decided.

The ministers will have to try extra hard this week not to fall asleep in their chairs....even on live TV.

I'm just wondering how we managed to live without any consumption tax in the "old days" ? Debt or no debt, it's not the "oldies" fault and they're the ones (at least, those who have neither a "pension" nor a "family fortune") who are not going to be able to feed themselves when the tax goes up ! As others have mentioned before, can't they leave food and medicine out of this system ?

This tax hike is only going to hurt the people who have to go shopping for food and don't have the extra money to buy extra things in their life. As I have previously stated in one of my post, I don't have a problem if they want to raise the taxes on things like clothes, car stereos, or other nonesentals but raising tax on food and things for children such as diapers is in my opinion unacceptable. When I say food I mean healthy food not junk food.

Only asking the rich and elite? Not a very representative sample...

Why not ask some of the people at the other end of the scale?

Why is the comparison (and erroneous at that) with Canada made here again? Sales taxes are different for each province in Canada and I think only Alberta has a sales tax that low. For example, Ontario has an HST of 13%. In Japan this tax increase will have little effect as the money will disappear into the hands of the rich and sneaky (as usual).

Increase sales tax accompany with increase corporate taxes, put spending on education, healthcare and elderly benefits.

Increase sales tax accompany with increase corporate taxes, put spending on education, healthcare and elderly benefits.

Increasing the sales tax means people have less money to buy goods with. This decreases the sales of goods, which reduces the profits of the companies which make and sale the goods. When the companies make less profit, they have less money to pay their workers, let alone hire more workers.

Increasing the corporate tax does not mean that corporations pay more tax. Most people don't seem to understand that taxes on businesses and corporations are passed directly to the consumers who buy the products and services which these businesses and corporations provide through increased prices. Taxes on the weallthy always affect the poor more than the wealthy, it amazes me that most people cannot grasp this very simple fact.

Perhaps you don't realize that a company's biggest expense each year is usually tax. Most companies spend more on tax than they do on payroll. Is it any wonder why wages have not increased? Is it any wonder why many new graduates cannot find a full-time job? Eventually the weight of taxes becomes too heavy to carry, and companies simply outsource production to another country where the burden is lighter.

The only posiive thing which can come from the increase in the sales tax is that it will speed up the ineveitable collapse of the economy. I hope your bank savings are not in yen.

Going to destroy spending in the economy

We may start to see cut backs from all corners of this society. Industry will start reduction in pay increases and bonuses. Food packaging may become smaller though prices won't change. Consumers will become frugal when shopping and keeping that car another year and driving less will be the norm. Certain areas may see an increase in spending. Used cars and recycle shops. Life will go on as usual.

Brilliant politics to hold public hearings. Abe's decision will be criticised and lambasted whichever way he decides. But this way he'll have some political cover and appears judicious.

Personally, I like Iwata's proposal of 1% a year increase for 5 years. That way the GST is increased in a predictable but gradual manner. The major downside is the systems costs associated with changing all POS systems like cash registers, every year for 5 years.

If you have money, you are for the tax or at least indifferent. If you are poor or not doing well you are against. Simples. All these people asked their views will be for the tax. The increase will cause the economy to slump even further. There's no hope for Japan whatsoever.

"Those taking part include academics, consumer and labor union heads and executives"

All of those people have more than enough spending money and don't care if the tax increases.

"Going to destroy spending"

Nonsense! Everyone soon got used to the 3% tax, then the 5% tax, by golly they'll soon get used to 8% and then 10%!

Well make it 100% then, They'll soon get used to it and think of all the bridges and dams they can build.

The Finance Ministry had the sales tax hike enacted by manipulating former prime ministers Kan and Noda and LDP's then top Tanigaki after ousting Ozawa. Not to raise the sales tax will incur bureaucrats' displeasures and uncooperative behaviors to stalemate the government. Abe knows it but he seems to be hesitating to go ahead with the sales tax hike as scheduled. If they raise the sales tax, economy will slacken and tax revenues will not increase and deflation will continue. But the Finance Ministry doesn't like the idea. They think that if economy picks up and revenues increase, they cannot raise taxes. Continuation of deflation serves for their main aim of raising taxes.