politics

Gov't establishes expert panel to debate planned second tax rise

12 Comments

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Pure window dressing. The.decision to increase the tax to 10% was never in doubt and this exercise is purely for Abe to cover his assignment with the gullible electorate. Of course.he will.claim that he " carefully.considered" the effect on the peoples lives but he had no choice but to hike in order to maintain " economic responsibility". As usual the cronies will get their.pork via " supplementary.budget to safeguard the economy " while the average Taro will.get.another tax increase with next.to nothing to compensate for it. Funny how the BOJ easing was announced just a.couple of days before this expert panel.begins debate. What an incredible coincidence.

6 ( +7 / -1 )

The majority of panel members is believed to be in favor of going ahead with the tax increase, in order to maintain trust in public finances.

I'd have more trust in public finances if they didn't piss away each tax increase on pork-barrel stimulus packages. It's like trying to stay warm by closing the front door and then opening all the windows.

3 ( +3 / -0 )

Replace "debate" with "rubberstamp" and this headline might be accurate.

2 ( +2 / -0 )

Tax increase, etc will happen regardless of who is in power. Most decisions like wars happen behind the scenes.

1 ( +1 / -0 )

Mrs Abe's suggestion that the Japanese government must try reduce its expenditure first instead of increasing Sales Tax next year from 8 % to 10%,in order to avoid placing unnecessary burden on the pockets of common Japanese people ,deserves serious consideration by the government before hiking the tax.

1 ( +1 / -0 )

People don't like a consumption tax hike.

What are the alternatives to improve Japan's budget deficit by 5 trillion yen a year on a sustainable basis? What 5 trillion yen of spending should be cut? What economic policies could generate enough growth to reap 5 trillion yen of extra tax revenues each year?

Relatively, Japan's spending on non-social security spending is lower than in other developed countries around the world, so Japan might be able to cut some spending there, but it's the social security spending that has ballooned over the years, and is the prime candidate for reform, and it must be even if the tax is hiked because that alone won't be enough anyway.

Would be great if this panel were told to consider and recommend the best alternative, because doing nothing and living in dream land isn't going to do jack to improve Japan's debt dynamics, while in the meantime the yen continues to sink.

1 ( +1 / -0 )

If the following is true, the panel is already a disaster for the average shopper: "The panel meetings will be attended by Economy Minister Akira Amari, Finance Minister Taro Aso and Bank of Japan Governor Haruhiko Kuroda."

Putting Aso and Kuroda on the panel is like getting two votes in favor of increasing the consumption tax by 2%.

0 ( +1 / -1 )

I still think Abe will chicken out of raising the tax next year. He's only thinking about the next election and with Abenomics a dismal flop he can't afford to raise the tax as well.

0 ( +1 / -1 )

Yes, let's have a panel to discuss forming a panel to discuss...."

0 ( +2 / -2 )

What are the alternatives to improve Japan's budget deficit by 5 trillion yen a year on a sustainable basis?

Make all tax increases contingent on equal reductions in expenditures. 2% tax hike? Fine; 2% spending cut. Governments will spend whatever they take in, and then some.

0 ( +0 / -0 )

Yes, and this "panel of experts" will no doubt be hand picked by Abe

0 ( +0 / -0 )

Gov't establishes expert panel? I think average tax paying citizens, would be a much better choice to debate the pros and cons of another tax hike, rather than these so called "experts"

-1 ( +0 / -1 )

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