politics

Gov't finalizes draft proposal for tax reform, but uphill battle looms

9 Comments

The government and ruling Democratic party of Japan (DPJ) on Friday completed its draft proposal for tax and social security reform, including the contentious consumption tax hike.

However, the government faces an uphill battle getting the proposal anywhere near a vote in Diet.

All the major opposition parties have already refused to take part in cross-party talks on the issue. Furthermore, Noda has run into opposition to the proposed tax hike from within his own party, including former DPJ chief Ichiro Ozawa.

The main bone of contention is the government's plan to raise the consumption tax in two stages -- from the current 5% to 8% in April 2014, and then to 10% in October 2015. The tax hike is meant to help fund Tohoku reconstruction efforts and pay for spiraling social security costs.

Noda on Friday once again called on the opposition parties to come to the negotiating table. He said he would like talks to start preferably next week with the aim of submitting a bill to the Diet in March. "There is always room to reach a consensus," he said.

But opposition Liberal Democratic Party leader Sadakazu Tanigaki said his party cannot approve any hike in the consumption tax and repeated his call for the prime minister to dissolve the lower house and seek mandate from the people.

© Japan Today

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9 Comments
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So when is Noda gonna step down?

-1 ( +1 / -2 )

from 5 to 10 % in 2 years. How to run a country into the ground fast.

"Raise taxes for reconstruction efforts." Yeah right? BTW Im not saying that it ain't a good thing, because the people in Tohoku really need and above all DESERVE it, but anyone remember what happened to the +15 billion dollars that were donated by other countries? I dont think Tohoku will see a dime from the money after tax has been raised.

3 ( +3 / -0 )

but anyone remember what happened to the +15 billion dollars that were donated by other countries

And your evidence that the money has been diverted elsewhere is what, exactly?

-2 ( +1 / -3 )

Okay, opposition won't discuss,plus the weak thinking,Ozawa bunch, WHAT is their proposal to get Japan out of the @£$%.

-1 ( +0 / -1 )

OK I am no genius but I don't want to hear about consumption tax until they get rid of the blasted 1 yen coin shrapnel that invades my wallet first.Grow a brain.

-2 ( +1 / -3 )

WHAT is their proposal to get Japan out of the @£$%.

elections :)

1 ( +1 / -0 )

elections :)

Ugh!!!! Again?!

-1 ( +0 / -1 )

i gather that the corporate taxes are already at the high level they should be at, so the relatively low consumption tax in japan is probably the correct approach, given that the need to increase government coffers is unavoidable.

the only alternative would be a VAT tax, which might reduce the burden on those spending primarily on daily necessities, as the increase in the number of such "working poor" has been noted.

0 ( +0 / -0 )

IMHO, Japan CANNOT wait any longer. The tax hike is unavoidable. LDP was initially acvocating for the tax hike, now they are opposing against the tax hike?

Listen up, folks. Do you wanna wait another 3-5 years and do NOTHING to see more chaos (financial tsunami)? Face it and fix it NOW. I believe Noda is taking Japan into the right direction. Unlike other failing DLP PMs, this guy has a crystal ball in macro perspectives for Japan and Japanese people. You need to make a hard choice NOW.

What did LDP accomplish in the past 2 decades? Nada! The LDP stole dream, hope and future from you guys. They already borrow it from your future and spent it all. Please wake up folks. You will be the judge.

0 ( +0 / -0 )

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