politics

Ruling coalition OKs Y1 tril exemption in 2017 sales tax hike

15 Comments
By Tetsushi Kajimoto

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The move is expected to cause a loss of about 1 trillion yen in revenue, or about a fifth of that brought by the planned tax hike. The government plans to fund the exemption by shelving planned medical care breaks on low-income households worth 400 billion yen. It has not secured other funding sources.

Great, now take the money you have just "given" to the people who need it most away, and use the revenue loss as the excuse. The working poor get shafted again.

Easy to "find" one trillion yen Mr Abe, just look in the bank accounts of all your fellow politicians and the companies that have made their fortunes courtesy of the tax paying people of Japan.

Cut your bonus, (that's what happens when businesses are in trouble) cut your pay, (same thing), hiring freeze, stop pork barrel politics, you'll get the money in a heartbeat. Oh and cut the consumption tax on food products to zero along the way. The economy would flourish with increased consumer spending. But you wont, too stuck on yourself and the "power".

14 ( +15 / -1 )

Seems like voter apathy and weak opposition that's letting Abe and his gang do pretty much whatever they want. The only group that would make any noise, the right wingers, Abe is already pandering to them, so all's good for him and his cronies.

6 ( +7 / -1 )

Waiving just two percent tax rise after two years...making daily headlines.

2 ( +3 / -1 )

Seems like voter apathy and weak opposition that's letting Abe and his gang do pretty much whatever they want. The only group that would make any noise, the right wingers, Abe is already pandering to them, so all's good for him and his cronies.

One has to look a little deeper than voter apathy in my opinion. Abe, as people should know, is the leader of the LDP, which because of their numbers in the Diet gives him the seat of the PM.

Diet members are stars in their home districts and people are generally speaking looking at the "small" picture vs any "big" collective picture and vote for the person first and then the party. The LDP plays on that too.

4 ( +5 / -1 )

It seems the Abenomics magic wand is broken! It was clear from the outset that his economic dreams of recovery were just political guff to gain votes. After three years of this rubbish the country is worse off than it was before. He stated the aim of the tax increase was to lessen the huge public debt, but none of the funds have been used for it.

3 ( +5 / -2 )

shelving planned medical care breaks on low-income households

Nice PM, dividing again, pressurize the low-income households to finance the extra govt spending, nice model of society.

7 ( +7 / -0 )

If the govenment wants to win points with voters, why doesn't it stop charging shoheizei on salaries? Correct me if I'm wrong, but I'm aware of no other country that charges sales tax on earned income.

0 ( +2 / -2 )

If Abe continues like that, all our income will only be just a huge list of deduction. More and more we feel like the govt needs the population to survive and not the other way around....

2 ( +4 / -2 )

Failure to secure funding sources would threaten Japan’s aim of balancing the primary budget - excluding new bond sales and debt servicing - by fiscal 2020 in a bid to curb the heaviest debt burden in the industrial world.

A new one: "funding sources" otherwise known as tax revenue.

Raising taxes is "old hat". It has been done. What would really take a good amount of political will are spending cuts, market liberalization, and tax cuts.

Exempting food from the sales tax hike looks good, but, the reality is that an increase in taxes will inevitably lead to higher food prices. The food industry's costs will go up on things like fuel, supplies, equipment, etc.

There's no government in the G8 that needs more tax revenue. What the Japanese government needs to do is cut spending. Spending cuts aren't easy or popular, but, they don't take money out of working people's pockets, or from the profits of business.

Japan's debt is a symptom of a much bigger problem: a sluggish, over-regulated economy.

Japanese people pay a lot in taxes, health care premiums (which are sky-high), and fees. Raising the consumption tax takes badly needed money out of the economy, and ultimately hurting growth.

If more tax revenue is needed, then make the Japanese economy more open, engage more actively in international trade, cut taxes on median incomes, and provide tax incentives for investment, and entrepreneurship.

Retire "the taxman" and give consumers a break for a change.

2 ( +4 / -2 )

komeito hasn't done us any favors. if they really wanted to help the people, they would break the alliance. That would take the wind out of Abe's sails. komeito is just as culpable as Abe.

4 ( +6 / -2 )

Yubaru put it perfectly. Bravo my man.

5 ( +5 / -0 )

Sorry, "shohiizei" / 消費税. Can Santa bring JT an edit button for Christmas?

-2 ( +0 / -2 )

Stupid actions from Abe. This is about the worst possible plan with respect to the economy; the original objectives have been forgotten.

Komeito are going to harm the economy and all with Abe's blessing.

0 ( +1 / -1 )

The only thing anybody will learn from this article if they read past the "worrying signal of back-pedaling on fiscal consolidation" line is how clueless the so-called economics experts are. There is no such thing as "fiscal consolidation", and there will be no primary surplus as the Japanese government does not have the means to make that happen. It can only happen if there is a private sector deficit, which is the private sector's decision to make not the government's. And it will not cost 1 trillion yen in lost revenue. Most if not all money saved by the taxpayer will be spent elsewhere, where it will be TAXED. That last one should be obvious to a kindergarten student, but apparently over the head of the "experts".

0 ( +2 / -2 )

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