politics

Japan sales tax hike 'welcome first step': Lagarde

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he intended to raise the sales tax in the world’s third-largest economy to 8% from 5% in April, and would soften the impact with a 5 trillion yen stimulus package

Robbing Peter to pay Paul. The stimulus defeats the purpose of the sales tax hike. It's just a transfer from the public's pocket to corporate Japan's pocket, with no application to reduce indebtedness---the purported reason for the increase.

5 ( +5 / -0 )

Welcome to you, perhaps. The decision to hike the consumption tax will cause an immediate surge in the economy because people will rush to buy things -- especially big things like houses, cars, and major electronics... even rushing to get married! -- but once April rolls around spending will decrease dramatically and things will flop.

3 ( +4 / -1 )

It is too bad the Japanese sales tax hike will be imposed to everything including food and medicine. Here in US, we never pay sales tax on food and medicine. Each country is not perfect, but the possible answer to the exclusions may be that there is a difference in economic ideology/models between US and Japan. I believe this will be very hard for ordinary Japanese people in the middle class. At least, the world interprets this as a positive move for Japan.

-1 ( +1 / -2 )

Most of the world think that Japan is a rich nation, and that the Japanese have plenty of money. The few Japanese who travel overseas tend to spend a lot of money there, fully reinforcing the myth.

The truth is that the Japanese have a rather low income among developed countries, being 1/3 less than in America. The high cost of lving in Japan means that the Japanese have among the lowest level of disposable income of developed countries. When you are already paying two to three times as much for food as an American or European, and have to pay full tax on it, you certainly aren!'t going to welcome even more tax.

3 ( +6 / -3 )

Ms Lagarde is more than welcome to donate 10% of her wealth to the Govt of Japan as her own first step.

3 ( +5 / -2 )

Entitlement reform is the next one.

Yes there are way too many over entitled ones here. People now a days think just because they live they are entitled.

0 ( +1 / -1 )

She has no business telling Japan how to conduct it's affairs. Last time I checked Japan wasn't in hock to them or any of the world banks.

0 ( +4 / -4 )

So we have fabulously wealthy economic czars like the elegant Christine Lagarde welcoming a higher tax on basic necessities to pay for the massive corruption and waste of Japan's old boys who run the show.

Oh, and then entitlement reform is "the next one". The main point is to stick it to working people, so that the financial sector can fatten itself some more.

2 ( +5 / -3 )

Wasn't this Largarde in some corruption scandal recently?

3 ( +4 / -1 )

Its unfortunate for Japanese citizens (younger ones) who have to shoulder entitlements for older generations. And having to pay higher consumption taxes. Its hard to pay for everything.

1 ( +2 / -1 )

pochanOct. 05, 2013 - 09:55AM JST

She has no business telling Japan how to conduct it's affairs.

You do not like to hear this, but this is What the IMF Does.

1)The work of the IMF is of three main types. Surveillance involves the monitoring of economic and financial developments, and the provision of policy advice, aimed especially at crisis-prevention.

2)The IMF also lends to countries with balance of payments difficulties, to provide temporary financing and to support policies aimed at correcting the underlying problems; loans to low-income countries are also aimed especially at poverty reduction.

3)Third, the IMF provides countries with technical assistance and training in its areas of expertise. Supporting all three of these activities is IMF work in economic research and statistics.

You really need to work harder to avoid a situation what Greece had to go through.

-1 ( +2 / -3 )

1)The work of the IMF is of three main types. Surveillance involves the monitoring of economic and financial developments, and the provision of policy advice, aimed especially at crisis-prevention.

They were derelict in their duty then prior to 2008, perhaps they were complicit

2 ( +2 / -0 )

Every individual will be subjected to an increased service tax, but stimulus package will come into the society as a result of trickle down effect. I hope they have thought long and hard before doing this...

-3 ( +0 / -3 )

IMF chief Christine Lagarde has said before that she would like to see Japan's consumption tax rise to somewhere around the high teens to 20%. Probably she believes that if Japan gets more money from this tax, then more money will be available for the IMF to throw around. First step or not, I wish she would stay out of Japan's monetary picture.

0 ( +1 / -1 )

sangetsu03Oct. 05, 2013 - 08:00AM JST

The truth is that the Japanese have a rather low income among developed countries, being 1/3 less than in America. The high cost of lving in Japan means that the Japanese have among the lowest level of disposable income of developed countries. When you are already paying two to three times as much for food as an American or European, and have to pay full tax on it, you certainly aren!'t going to welcome even more tax.

Very true. Low income vs High cost of Staples. I would like to invite you to a further analysis and a discussion why it is so. You have a spot on.

0 ( +2 / -2 )

The truth is that the Japanese have a rather low income among developed countries, being 1/3 less than in America.

Please do not confuse your salary level with the rest of us living in this country. I am in my 30s and make slightly more than average (6 million yen compared with 4.5 million) for my age group. I make more than most of my friends back home (US), and some of them were unemployed for up to a year until recently. Are you trying to say that Americans in their 30s make over 135,000 dollars a year on average?

-2 ( +3 / -5 )

welcome first step in stealing money? In the end the will take peoples savings away to let this rotten system continue to run or also a yen default is possible where people losing the lot. seen this in russia, seen this many times in argentina...

people spend the money as long you get something for it. yen lost alone more than 35% since last year towards to rotten euro.

0 ( +1 / -1 )

Kickboard, I hope you don't work in the mathematics field. ¥6 million is no where near $135,000 usd. Also, ballyhoo for you. You can pay my share too.

-1 ( +1 / -2 )

You do not like to hear this, but this is What the IMF Does,

What the IMF really does is to take money from member states and give it to other states. How much the receiving state will receive depends on how much it kicks back to whichever bureaucrat awards them the money, or if they use the money to buy goods or services from the bureaucrat's friends and family.

-1 ( +2 / -3 )

IMF chief Christine Lagarde has said before that she would like to see Japan's consumption tax rise to somewhere around the high teens to 20%

I believe the world has been giving a pressure to J. Gov to do that in the past. Well, you did good at 8% sales tax hike as I have not heard any noise or objections from the world. The world bankers are listening. Credit Rating hawks are monitoring all the numbers from Japan.

-2 ( +0 / -2 )

Miss La Garde heads a corrupt banking organisation which should have no right to either comment or interfere in the affairs of any nation, much less Japan. Japan's Sales Tax is too high at the moment. If is because of corrupt bankers that the world is now in the current mess, yet none of them are behind bars, where they should be, and ordinary people have had to pay the price for their corruption.

0 ( +2 / -2 )

She is a French. Not rich. Not corrupted. held several different French ministry Ministers. Excellent in French society where she bosses many organizations. She does not have scandals behind her. My guess is that she does not know about Japan too well. She does not know Japan is not France.

0 ( +0 / -0 )

Often times, all of us tell you what is good for Japan.

Japanese are proud people and they do not like to be told what to do by others even though these people meant well.

-1 ( +0 / -1 )

IMF is only to get their cut of the take!! Abe is only for corporate profits and for the rest of us... checkmate!!

0 ( +0 / -0 )

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