politics

Japan to compile big extra budget for stimulus after summer election

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The LDP is just all out of ideas.

Scrapping red tape, lessening regulations and lowering income tax liability would all be an aid in stimulating the economy.

And why are we paying tax on food?

6 ( +14 / -8 )

The plan has four arrows……..Sorry, pillars!! How foolish of me.

10 ( +10 / -0 )

If this is the liberal party, they tend to waste tax payers money. Is it not time for a move to politics that doesn’t keep printing money and stops waste? Kishida has been printing more money constantly since taking over..

2 ( +3 / -1 )

But relying on reserve funds and tax revenues will not be enough to finance the second supplementary budget and the issuance of debt-covering government bonds seems to be unavoidable.

Pooring more money when there's no money left, print a new government new bonds.

0 ( +3 / -3 )

The LDP's "new form of capitalism" envisions a greater role of government in the economy. It seems these conservative nationalist reactionaries in the party are now OK with socialism.

0 ( +2 / -2 )

A government task force earlier this week unveiled a plan to realize a "new form of capitalism," a concept advocated by Kishida for fairer wealth distribution.

Every article by Kyodo on the economy and budget mentions the concept of a "New Capitalism" and its aim of "fairer wealth distribution" then lists proposals that have nothing to do with that.

Only the same old subsidy packages for oil wholesalers or venture capital.

Repeat a lie often enough and it becomes the truth”

-Joseph Goebbels.

The cognitive dissonance is real.

4 ( +9 / -5 )

GDP in the first quarter of 2022 has been reported as down!

The politicians are hoodwinking the population giving them nothing whilst acting behind an illusion of largesse.

The illusion is wearing thin though…

0 ( +3 / -3 )

Japan is planning to compile a supplementary budget worth more than 10 trillion yen after this summer's House of Councillors election to finance measures aimed at stimulating the economy and mitigating the impact of rising prices, government sources said.

Japan has been rolling out packages to "stimulate" the economy and "revitalize" the countryside for 3 decades with not much results except keeping both on life-support...Not holding my breath about the counterbalancing the impact of rising prices-part...BTW, I haven't seen much financial support since the 100,000 JPY back in 2020...Did my checks get lost in the mail?

A government task force earlier this week unveiled a plan to realize a "new form of capitalism," a concept advocated by Kishida for fairer wealth distribution.

A lot is being printed about that "new form of capitalism" but not so much about the details around it...

The plan has four pillars -- human resources, science, technology and innovation, investment in startup companies, and green and digital technology.

"human resources": so salary increase coming up? Right? Right? Riiiiiiight?

"science, technology and innovation": pleasepleaseplease, just don't tell me we're not talking about that flying car-nonsense, the Linia maglev-moneypit or similar nonsense!

"investment in startup companies": ...and the risk they represent?

"green and digital technology": green tech maybe very interesting...assuming it does not go the way that digital tech is currently going...namely nowhere while being kept on cpr with a LOT of hot air and buzzwords...

We're definitely heading for summer. The forests of magic money trees are in full bloom. Beware autumn (after election) when tax-raise leaves will start raining down on us...

-1 ( +4 / -5 )

Situation is getting out of control, it is second stimulus package/additional budget this year.

2 additional budgets and it is not even July yet. Next year stimulus package every month?

Anyway get ready because Japan bankruptcy will be painful. Sell your yen until you still can.

-4 ( +5 / -9 )

Japan is planning to compile a supplementary budget worth more than 10 trillion yen after this summer's House of Councillors election

how convenient. Not too transparent.

-2 ( +2 / -4 )

new form of capitalism

haha make more bonds sell to yourself so you do not have to pay your debt back. seems like a flawless plan but how long can you do it?

-1 ( +2 / -3 )

Old wine in old bottles once more.

Once the plan, as well as this year's fiscal and economic policy guideline, is approved by the cabinet, the government will move into the process of crafting specifics of the focus areas.

Proof positive that the LDP creates the PR and marketing plans first and then slings together a few buzzwords in place of real policies. There was never any intention under "Abenomics" to implement the structural reform that Japan desperately needs and there'll be none under this farcical "new capitalism" either. How on earth are they going to stimulate real growth in a country with low productivity, an aging population and a rigid labour market? Nearly 30% of the population is over 65 and it shrank by 628,205 people last year.

Only the same old subsidy packages for oil wholesalers or venture capital.

Socialism for the rich and capitalism for the poor, same as it ever was.

7 ( +7 / -0 )

kurisupisuToday  07:02 am JST

The LDP is just all out of ideas.

Scrapping red tape, lessening regulations and lowering income tax liability would all be an aid in stimulating the economy.

And why are we paying tax on food?

why are we paying tax on food?

well if we don’t pay tax on some foods we’d end up like people in the USA and the UK. Extremely obese, then ask the tax payer to pick up the health care costs.

-6 ( +1 / -7 )

Love the first one, human resources.

code for more young immigrants. They’ll pay tax day one off the boat.

the rest. I guess that’ll take years. And someone should tell the government robotics and machines don’t pay tax, just allow companies to cut the Human Resources.

-4 ( +1 / -5 )

More corporate welfare….. so much for “opening up.”

-1 ( +1 / -2 )

And why are we paying tax on food?

Because in modern economies there’s a value added tax or sometimes called consumption tax, which means that in every step of production process a value is added to the raw material or former stage of the product and that small upgrade part is taxed and has to be paid by the receiving customer. The last one in the chain, also a customer but moreover the final consumer too , or a factory who buys it fully for other products , he pays it all of what the former costs combined were, while the former in the chain only pay the added value part for their production step minus own costs. If you for example buy a bread in a plastic bag then many steps were necessary to produce it from the fields’ grains and then making wheat powder , bake it , pack it into the bag and deliver it to you or a supermarket nearby , and you pay for that whole number of services, plus every steps’ taxes, of course. If you own a field and can make it all alone, then there’s no tax for you, of course, as nobody knows that you made additional value and changed the harvest into a eatable bread from the raw grains. If that’s what you want and are all capable of, go ahead…

2 ( +2 / -0 )

Sven Asai, what you describe is how we pay tax on food, not why.

Also Japanese consumption tax is not the same as VAT, it’s calculated differently and is levied differently.

Other countries have zero tax on food, there is no reason Japan cannot do the same except that the pollies have decided they don’t want to.

2 ( +3 / -1 )

value added tax or sometimes called consumption tax, which means that in every step of production process a value is added to the raw material or former stage of the product and that small upgrade part is taxed and has to be paid by the receiving customer.

Mistaking "value added" to middlemen taking a cut, subsidies from the public taxes to the farmers to make them competitive with larger foreign producers and tariffs on foreign goods.

All of which the public ends up paying for in the end.

Your definition of "adding value" may differ.

But it is highly regressive to tax such foodstuffs nonetheless.

0 ( +1 / -1 )

Low rate, broad based consumption taxes are imposed so as the collect a steady source of revenues that are insensitive to economic conditions, so that the government has money to spend on the needy.

I’m good with this.

The problem is invariably that governments spend too much money that they don’t have, on other things, without stable sources of revenues. And they are enabled by some who want the government to spend more money - just not their own money, but someone else’s, and that money doesn’t exist or can easily move elsewhere to where it isn’t scapegoated.

0 ( +0 / -0 )

Bogus announced to generate public approval by deceitful illusionary promises

-1 ( +0 / -1 )

"invest in startups"

In Japan I believe that's code for giving money away to your classic mega corps... would benefit us if it got to real startups and not another Sony, Panasonic [etc] spin-off

0 ( +1 / -1 )

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