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IMF praises Japan move to raise sales tax

28 Comments

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JimizoJul. 08, 2012 - 09:58AM JST

@bass funk If that's true, please explain why the US has veto power ( the only country with this ).The US can and has torpedoed any decisions that it hasn't agreed with.

The US also has 16.75% of the vote... But contributes more than 17.5% of the resources. It is as much as all of Africa and the middle east combined.

Regardless, IMF should mean nothing to Japan, since they just siphon money and then go against yen weakening and yuan strengthening even though they support arguments about unfair balances in prices.

0 ( +5 / -5 )

You know you are on JapanToday when you see a bunch of people with no credential talk as if they know economy better than economists at the IMF

Spoken like someone who has more deference, than common sense.

0 ( +0 / -0 )

Madame Lagarde has just pocketed US$60 billion contribution from Japan prior to the Mexico G20 Meeting.. She now praised Japan's initiative on raising sale taxes.. from Japanese wage earners... Beware of her 'eventual' intention for a few more billions.. IMF oh IMF !

0 ( +0 / -0 )

And note how "successful" those nations that HAVE followed IMF guidance are...actually AREN'T. Have a gander at the mess which is EU. Nope, doesn't take an alleged expert economist to understand that.

0 ( +0 / -0 )

@oberst given the state of what is called economy today i'd say their system doesn't really work and has to be adapted to 2012 so some might say the IMF indeed doesnt know how to handle progress, future and the entropy in all things. The rigidity with which the old world clings to what it knows chokes everything before it's born right now.

0 ( +1 / -1 )

You know you are on JapanToday when you see a bunch of people with no credential talk as if they know economy better than economists at the IMF

............................the power of Wikipedia, LOL

-1 ( +2 / -3 )

That's ok. Raise the consumption tax and get rid of all the other ridiculous taxes like car purchase tax, weight tax, engine size tax, aquisition taxes, sales taxes, inheritance taxes, citizen tax, ridiculous highway tolls etc. What the hell is the difference between a car purchasing tax and the consumption tax levied on the price of a motor vehicle? Consumption tax is as the name implies- a tax on consumption. There should not be additional sales or purchasing taxes over and above the consumption tax. Japan wants to copy an overseas tax system but wants to retain it's other taxes as well. Also, a lot of people here collect the consumption tax but do not pass it on to the government as the system is not secure by way of a tax registration system to keep track of collection and returns.

There is something I like to tell people about income taxes. Income tax is immoral as it makes a worker who has done a hard labour become a slave to the government who then takes their portion and spends or wastes it any way they want to without the workers having any say in the matter. It's really easy to spend money that you haven't worked for yourself.

The consumption tax is a fair tax system and even if it was 20 percent on everything traded or sold, there would still be a lot of money collected for the government coffers even with very little or preferably no income tax. Of course Government spending and wastefulness would have to be implemented as well.

-2 ( +0 / -2 )

@Hidesuzuki I wouldn't say for a second that I know more than the economists at the IMF. I would say that the IMF basically reflects the thinking of the US and this has alienated many developing countries. That's one of the reasons why fewer and fewer countries take what it says seriously.

2 ( +2 / -0 )

@bass funk If that's true, please explain why the US has veto power ( the only country with this ).The US can and has torpedoed any decisions that it hasn't agreed with. The IMF, in effect cannot implement ideas unreflective of US values, often to the disadvantage of developing countries as seen in South America where shock therapy did untold damage to their development . That is why it is becoming increasingly marginalized.

0 ( +0 / -0 )

I'm sure the IMF knows much more about economics than I do, it's what they do with that knowledge that worries me.

3 ( +3 / -0 )

You know you are on JapanToday when you see a bunch of people with no credential talk as if they know economy better than economists at the IMF

0 ( +3 / -3 )

The IMF has been discredited around the world and is seen by many as an instrument of US

It is SEEN as that, but it isn't and doesn't make it so.

-1 ( +2 / -3 )

lower taxes and dismantle the social welfare state that we have now! get rid of healthcare and mandates! it's unconstitutional. we can save lots of money if we get rid of these socialist programs

-5 ( +0 / -5 )

"Japans sales tax was ( is ) ridiculously low"

Amazing how they did without a national sales tax at all until 1989.

2 ( +3 / -1 )

Well while i am no fan of rising taxes, but in this case i am actually surprised that it wasnt done earlier. Japans sales tax was ridiculously low and even after the raise it will continue to be very low compared to other industrial countries. One need to cut spending, but more income doesnt hurt either.

0 ( +1 / -1 )

The IMF lauds Japan's (Noddy Noda's) plan to raise consumption tax?

Now I KNOW there's something wrong with it!

3 ( +4 / -1 )

misappropriate, wasteful spending, dumber social programs. Hard workers already work hard enough, now we are going to TAX them. This tax bill is going to send a chill down my spine. I don't want to pay for old people. Old people can start working again.

0 ( +2 / -2 )

raise taxes, INSTEAD of cutting spending

I was amazed and disappointed to see many kilometers of major roads in my city recently being resurfaced, totally unnecessarily. Seems to be like an automatically renewable scheme. And commuters' roads into the hills, residential areas are left in a deplorable state. Road works keep people in business, but I feel tax money is being wasted and misappropriated.

3 ( +4 / -1 )

http://worldnews.msnbc.msn.com/_news/2012/07/06/12592667-japan-to-go-broke-by-october-standoff-threatens-to-collapse-budget?lite

-1 ( +0 / -1 )

Of course the IMF is happy to see Japan increasing the consumption tax ... when this increase is in operation then the IMF will be seeking its share of the money ...

Not an IMF fan 'cause it just throws other people's money down black holes ...

3 ( +3 / -0 )

The IMF has been discredited around the world and is seen by many as an instrument of US ideology. A great example was Angola in 2007 who decided to take a loan from China on far more attractive terms. East Asian countries have built up their reserves in order to avoid going back to this organisation and accepting its punitive measures. The sooner countries consign this organisation and its failed, damaging ideology to the margins and eventually the dustbin, the better off we will be.

1 ( +3 / -2 )

The IMF is becoming marginalised in Asia anyway - countries such as South Korea have paid off their debts and want nothing more to do with what is in effect a branch of the US.

They don't want, but they are still economically dependent on the US.

-2 ( +0 / -2 )

It would be better to inflate the yen.

I think you got that backwards.

1 ( +2 / -1 )

It would be better to inflate the yen. Higher taxes will cause more deflation which will cause the deficit to rise more.

-4 ( +0 / -4 )

Aaah yes, IMF have a great record on economic management. We should all listen to them....

3 ( +4 / -1 )

The IMF is becoming marginalised in Asia anyway - countries such as South Korea have paid off their debts and want nothing more to do with what is in effect a branch of the US.

3 ( +4 / -1 )

IMF praises Japan move to raise sales tax

The hum a of bustling economy is praise enough. What good are sovereign governments, if they follow this ilk, rather than serve the good people they were elected to serve?

She said raising the consumption tax has worked in other countries to reduce debt.

These "just here to help" comments from international meddlers who don't live, or pay taxes here, ring hollow.

Put them on a leash.

4 ( +5 / -1 )

World governments are on a path to destruction. Especially when they raise taxes, INSTEAD of cutting spending, and receive praise from the IMF.

8 ( +10 / -2 )

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