PM's adviser says no need to hurry with sales tax hikes

What are they going to do? Wait until the national debt reaches quadrillion yen? Until the economy implodes?

Backtracking and taking the easy way out seem to be what these guys are made of. "The future generation can pay," should be their slogan.

The LDP approved this unpopular legislation when Minshuto was in power but don't have the guts to implement it when they themselves are in power.

It's necessary unfortunately. Just drop the tax on food which even the poor need to survive.

Postpone the repayment of all this debt and leave it to the younger, over entitled, self indulgent, give it to me now , it's all about me generation, give them something to worry about and it may even help to pull them into shape once they realise the world isnt all about them.

Lets all just party on who cares about the uonger ones who have no respect or morales let alone understanding of reality.

Please cut spending, especially for areas that have low multiplier effects (i.e. wasteful construction projects).

"Raising the sales tax would not lead to an increase in revenue,"

Then why raise it at all? Clearly, Mr Hamada has no idea what he is talking about. Raising the consumption tax would definitely lead to an increase in revenue as it is imposed on everything.

If Mr Abe chickens out of raising the tax it is a sign that all his talk of "reform" is nothing but hot air.

The J governement predicted 2.6% growth this year, and that enacting the tax hike would lower that figure to 1%. Unfortunately, figures released yesterday showed growth of only .6%, and much of that was due to public spending by the government. If the consumption tax is enacted, it could result in negative growth over the next three or four quarters, and put Japan back into recession.

The economy will implode faster if the tax is enacted than if it isn't, though implosion seems likely result whichever happens. Taxation is not and never has been the problem, spending is the problem, yet this is the one which politicians most refuse to deal with.

ScroteAug. 13, 2013 - 09:40AM JST

Then why raise it at all? Clearly, Mr Hamada has no idea what he is talking about. Raising the consumption tax would definitely lead to an increase in revenue as it is imposed on everything.

It didn't last time, when PM Hashimoto increased the sales tax rate. People spent less and sales tax revenue went down in the amout the government collected.

" it could result in negative growth over the next three or four quarters,"

Negative growth. Akin to non-forward progress. Enough double-speak, call it what it is: recession.

What's coming is a depression.

Rock and a hard place, kids.

If they raise the sales tax, they'll kill the economy.

If they DON'T raise the sales tax, the bond rating will be lowered, likely increasing interest rates, causing debt service to eat a larger portion of government revenues, thereby killing the economy.

So they can either kill the economy, or kill the economy.

Nice going, guys.

So raise the tax, but drop it completely from living necessities like food products, rents and medical-related items.

All this talk about increasing consumption tax would be fine IF the govt had the stones to do whats REALLY needed & have been harping on about for years & that's is the following

CUT ALL MINISTRIES BUDGETS BY 15% right off the top, let the leeches who "work" figure out which programs get cut how much, its their damned jobs after all.

And the construction, finance, & foreign ministries should likely be cut 20% as there is so much waste, thieving, kick backing, amakudari-ing going on many aught to be jailed!

The above its where it all should start, THEN consider increasing the consumption tax(& remove it from food you morons!).

The govt & bureaucrats still haven't figured out they have long ago maxed out taxing & pilfering the masses, its time for govt/bureaucracy to CUT WASTE, I am sick of hearing of unused funds get blown on crap simply so they can get at least the same ca$h each year, its got to bloody STOP!

Or the country will continue on the road to absolute ruin, seems its what most Japanese want anyway from where I sit!

@GalapagosnoGairaishuA

I have to agree with you. Exempt food and medical from this burdensome tax.

At least the sales tax is the one tax that is fairly applied. Everybody has to pay it, even criminals and politicians. And it is the one tax that you can control by controlling your spending.

the sales tax is the one tax that is fairly applied. Everybody has to pay it

Everyone has to pay it, but not everyone pays the same. It's one of the most unfair taxes ever dreamed up.

If you're on minimum wage and 100% of your income goes on keeping you fed, clothed and sheltered, the consumption tax is (at present) a 5% tax on your income, none of which you have the option to avoid. If you're earning say 1,000 man a year and live a 500 man lifestyle (reasonably comfortable), the consumption tax is less than 2.5% of your income, with quite a bit of wiggle room to avoid paying at least part of the tax, simply by not buying unnecessary luxuries. If your income is 10,000 man a year and you have a 1500man-plus lifestyle, in absolute number terms you may be paying more in consumption tax than the minimum wage earner is earning; but the consumption tax is such a tiny, tiny faction of your income that you probably don't even notice it, and if it does bother you ideologically you have the option to avoid paying large chunks of it by simply not buying yet another designer handbag/sports car/whatever.

Here's the system that will SOLVE EVERYTHING.

1) Flat income tax of X%.

2) Government agents have to report all their spending.

3) If they are under budget, they HAVE to return the cash to the taxpayers.

4) If they are over budget, then they go to jail. People will vote who goes to jail. The percentage of people will go to jail will be proportional to the percentage over budget. 10% over budget? 10% of government officials go to jail. For life.

oh thanks Abe & advisor, you buttholes.

It's basic home economics...you DO NOT spend more than you earn but that's exactly what they have been doing since the bubble.Now they want the average J-family to do the same and have us spend all our money and even to get on more debt and who is going to bail me out when I'm bankrupt? I have nobody I can tax to up my income

The national debt is nothing to be worried of... it's all just exaggerated in the media. The Japanese economy may be stagnating, but it's really... fine. It's not in a state of emergency or anything like that. People are waving their arms around over nothing, just because the media tells them as if the economy was imploding. The Japanese media tells them to "Panic!", and the general public does (however they do the exact opposite with nuclear disasters, which may very well destroy Japan, but they tell the public to "keep calm! It's nothing to be worried about!").

over entitled, self indulgent, give it to me now , it's all about me generation, give them something to worry about and it may even help to pull them into shape once they realise the world isnt all about them.

I agree, Storm.

Wait... you were talking about newly-retired baby boomers, weren't you?

How about downsizing the redundancy of the central gov't, maintain the sales tax rate, lower corporate tax, suspend foreign aid and ODA and keep the yen trading at 100-105 instead of 98 to help export and indirectly decrease jobless rate?

Or give higher incentives to corporate who hire recent college grad or high school grad so the youth can and maybe have some sort of future?

If you're going to lower corporate tax, maybe demand the corporate to hire more young adults in order to secure that tax subsidies? Its not only the elderly that's an immediate concern, what future does young fellas have if they remain lost and ignored in these crucial years?

suspend foreign aid and ODA

ODA is a Japan's primary foreign policy tool. I don't think suspending it when Japan is seeking more influence and partnerships to counter China would be wise at this juncture. It's more of a security investment.

Smaller government is a no-brainer. Not sure that will ever happen, though. Japan likes their guaranteed jobs and bennies.

Owens Aug. 14, 2013 - 05:21AM JST ODA is a Japan's primary foreign policy tool. I don't think suspending it when Japan is seeking more influence and partnerships to counter China would be wise at this juncture. It's more of a security investment.

So, if its recipients have cash and options, will official aid end? Probably not. No sensible government snubs an offer of free or cheap money. Japan has learned the lessons of the past, ditched the aid mentality, and see themselves more as partners than as donors. Japan is more interested in trading for raw materials and investing in infrastructure than in exporting their own way of thinking. The aid flows are being dwarfed by revenues from oil, gas and minerals. Most, developing countries have plenty of money of their own, as they are discovering and exploiting natural resources at a faster. Very few governments still depend on donations to pay teacher salaries or build power plants. Today's average developing country has access to private funding. The real question, though, is whether aid will remain relevant, and if so how. The answer boils down to this: solutions. Governments in developing countries will seek assistance only when they have a problem that they cannot solve by themselves.

"Raising the sales tax would not lead to an increase in revenue"

Really!

ODA is still Japan's primary foreign policy tool. What is your point? Nothing you said has any relevance on the discussion.

I called you out on your ridiculous Osprey claim, so now you feel you need to argue with all of my posts? Are you really that insecure?

Stop responding to my posts. I don't care what you think.