Diet enacts law to create defense funds pool

the government will secure the necessary funding by selling government assets or tapping surplus funds in some special accounts of the state budget.It will also conduct spending reform and then raise corporate, income and tobacco taxes to partly fund the defense budget increase.

So basically another tax increase if the time is right.

There is no "funds pool." When the Japanese government spends, it marks up recipients' accounts electronically by basically pressing a button. Presto, yen is created.

The government doesn't withdraw or transfer out its cash savings out of an account. This latest scheme is just political theater. FDR did the same thing for funding the first social programs. He created mirage "funds" and "accounts" to give the public the sense that government benefits were based on finite resources.

Diet enacts law to create defense funds pool.

Diet enacts law to give Japanese tax payers money to US defense contractors.

Fixed the headline.

 to protect the country against security threats from its neighbors

This line is what is being sold by LPD so they can double the expending on weapons.

There's much to the history than this simplistic sentence but would the Japanese media ever go deeper and look for the details? Sure not.

The master had spoken...

Vassal states must spend 2% if GDP on defense (mostly US manufactured weapons).

Jeff Lee

There is no "funds pool." When the Japanese government spends, it marks up recipients' accounts electronically by basically pressing a button. Presto, yen is created.

The government doesn't withdraw or transfer out its cash savings out of an account. This latest scheme is just political theater. FDR did the same thing for funding the first social programs. He created mirage "funds" and "accounts" to give the public the sense that government benefits were based on finite resources.

Isn't that how all banks work, too?

an exclusively defense-oriented policy under its alliance with the United States

As others in this thread have mentioned, a U.S. tax in other words.

But a double punch one. We are not only paying for this from our incomes through taxes. We are also paying from our savings. Any increased government spending will water down the yen. And and any spending in USD will weaken the yen further.

At the same time, Kishida is worrying about how we can support the 70:s baby boomers when they enter retirement. They sure won't be able to support themselves, as the increased taxes will prevent them from adding to their savings, and the weakened yen will suck up the saving they have worked for all their lives.

But on the bright side, the aging population can feel safe from the "threats" of the neighbors. This is the right policy for Japan, go all in and build up a military to protect the elderly. The only question is, where will we find soldiers?

Always better to be ahead of than behind the curve.!. The US has some great military hardware for sell too ! I don’t understand all the anti American comments . The USA is more likely than not that most of you even enjoy the freedoms you have! So get over it! When disasters happen, rather they be natural or man made wars … the USA comes to the rescue ! Always there to help !

These are "China taxes" and "NK taxes" and "Russia taxes" because they all threaten peace in the region. If they were not all building more and more weapons, Japanese would not be taxed to keep up and remain safe. Japan makes most of its own weaponry with some US technology transfer and built under license. Plus top grade missiles and radars Japan cant yet make.

Nations that fall well behind, like China once did, had European nations walk in and "manage" large area's of China for decades. Well China and Russia lead the race on weapons today and the little lapdog NK is racing at their heels doing the same thing, all threatening to have their way in the region regardless of what other inhabitants want. The only way of keeping these dogs off Japan's lawn is to follow suit and arm up.

I guarantee when the buildup in China and NK and Russia stops, so will Japan's. Until then, get used to a stronger and more determined Japan SDF.

And thoughtless arms race policy by far-right LDP regime will be more victimizing medical services or social welfare or reconstruction to buy costly weapons.