Over 70% worried about economic outlook after consumption tax hike: survey

The survey found 74.9 percent have not reduced their spending since the tax increase, compared to 24.6 percent who have.

Do they increase their spending? No they don't. They just buy things with same amount of expense as before with less quantity.

In the survey, 37.5 percent said they will increase cashless payments but 61.2 percent said they will not,

That cashless benefit it's no more than one year, after that back to actual price with tax. Doesn't matter whether paying with cashless or not.

Over 70% worried about economic outlook after consumption tax hike: survey

No surprise here. The people know. The last two times they raised the sales tax the economy tanked. When it went from 3 to 5% in the mid 90s it spelled the end of Hashimoto. Five or six years ago when it went up to 8% the economy plummeted for awhile resulting in the current one being delayed twice.

Moral of this tale: Ya get what ya vote ( or don't vote) for and with the LDP you can bank on getting the SOS (with arrows).

@Speed

It's not relevant to compare past periods when it comes to government revenue, particularly when the context is so different.

Japan can't go on forever with a budget deficit, and corporations are getting better and better at using the global tax minimization strategies. Something has to change. The only way to 'actually' collect revenue (fairly) from corporations is via consumers, else big corporates (that minimize tax) will always have the edge over small family businesses.

The tax rise comes at a time when Japan's economy faces growing threats from escalating U.S.-China trade spat, the uncertain impact of the United Kingdom's exit from the European Union and tensions in the Middle East.

That's from global perspective, how about locally do they have any good news? Unfortunately no.

8% or 10%, you the consuming tax payer will pay regardless.

If the government can't balance its books, it will have to go into more debt, by issueing bonds and pay coupons anywhere between 2-4%. You will pay in the end.

What makes it repugnant to me is interest rate is negative currently, so mom and dad savings are not earning interests, but big financial houses are earning extraordinary interest via investing in government bonds.

It’s the same voters who voted for the LDP in the last Upper House election.

The consumption tax is not the problem. It is the low wages coupled with a contract and part time work system.Add to the problem is high food prices for imported products caused by very high tariffs.

The tax hike just went into effect. People will take some time to adjust but spending will definitely continue to decrease.

Look at the monthly train pass increases. Its ridiculous. I was forced to buy a 6 month in September because of the price difference in October. Over ¥10,000 difference.

Yaaaay abenomics!!!! Keep kicking that can down the road some more.

Look at the monthly train pass increases. Its ridiculous. I was forced to buy a 6 month in September because of the price difference in October. Over ¥10,000 difference.

¥10,000 that's good amount of saving you made.

Over 70% worried about economic outlook after consumption tax hike: survey

You voted this clown and his goons into offfice. You made your bed. Now sleep in it.

70% are worried? That makes sense when 60% are on semi-permanent contracts and 25% of children are living in poverty. The last decade has seen an unprecedented amount of small to medium sized businesses go bankrupt.

Do people realize they are being taxed around 50% of their salaries?

Income tax - 7-10%

sales tax - 10%

health insurance - 10% (single)

City tax - 10% (about)

pension - 15% - 80% of pension payments go into a void. Your actual entitlement is less than 20% of your investment

You can do the math. If you calculate in the 80% of your pension payments as a non-refundable payment you are being taxed well over 50% of your salary. Furthermore, next year will see in increase in city taxes and health insurance. The pension system is such a mess they have no alternative than to increase premiums and reduce payouts. It’s pretty easy to understand why 70% of people are worried

70% are worried. So that means that the other 30% are either braindead or in the grave already.

My worries are more about what Abe govt. want to use this 2% of tax consumption for the next budgets, the promise was to support social welfare for children and old generations and never for military strength he still dreams with his hawkish lawmakers.

@Sh1mon M4sada

The only way to 'actually' collect revenue (fairly) from corporations is via consumers.

「(°ヘ°) scratching my head here.....

not least because your two comments seem contradictory....

What makes it repugnant to me is interest rate is negative currently, so mom and dad savings are not earning interests, but big financial houses are earning extraordinary interest via investing in government bonds.

"fair"? "repugnant"? can't follow this.....

Precisely brother...only in this place sheeple keep continuously electing the same twits that screw them and then go on and complain about the same,s policies. Beggars belief.

California comes to mind. In fact, many flee their state because of high COL, take their politics with them, and vote the same in their new home.

The survey found 74.9 percent have not reduced their spending since the tax increase, compared to 24.6 percent who have.

So a quarter of the voters have reduced their spending. Yeah, this will negatively impact the economy.

Paying an extra 300 yen for a haircut will certainly have an impact on my current place where I have done business and now seeking cheaper costs hair salons. That's an extra 3600 yen per year just to cut my hair monthly. Yes there was no real reason to raise the consumption tax especially since originally it was 3% from the very beginning and now tripled. Corporate tax and many retirement age workers are still working anyway so how is this going to change in cost percentage as a loss to the social services? hmmm, this is more like Abe is raising money to fund his private military before he leaves office.

this is more like Abe is raising money to fund his private military before he leaves office.

Not really.

Government spending is around 100 trillion a year.

Revenues are just 65 or maybe 70 trillion a year now with the increase in taxes.

Big picture - a 30 trillion yen annual deficit.

Something does need to be done about it. Cut spending by 30% (massive), hike taxes more to get 130% of current revenues, or a combination of the two.

Or D), do nothing and pray that the problem will belong to someone else once you’ve left office.

Should go to the UK where you pay 20% VAT on food and other goods after your wages have been deducted through income tax (20-45% of your wages), National insurance (12% of your wages), council tax, road emissions tax and fuel duty tax (makes up 60% + 20% VAT of the total cost of petrol & diesel)

Yet you voted this moron in!?

What's needed is transparency upon exactly where the Tax income is going.

What's needed is transparency upon exactly where the Tax income is going.

To the Americans.  Japanese govt reduced corporation tax about the same amount.  Corporations will have more revenues and more dividends. The Americans are biggest share holders of Japanese listed companies.

japan's debt is so big, the only way out is modern monetary theory. print money to pay off its obligations. might actually work if at the same time they cut taxes to zero. think of all the money that it would free up for consumers and companies to spend. whether it ends up in hyperinflation or not, depends on confidence in the value of the yen. so long as people believe it has value, it has value. interesting times...

@Jiji Xx

scratching my head...

Big corporations, especially Japanese ones have been able to restructure (and divest earnings to offshore locations) to avoid income tax. Government collects consumption tax and income tax. Small businesses pays both, big corporates only pay consumption tax. Can you figure that out now? It's about how much is paid small vs big businesses. 'Fair'??? Not.

When government can't balance the budget, they have to go into debt, ie selling bonds (borrow money). The government (which means the people of Japan) is paying anywhere between 2-4% interest on that money. Grandpa with a savings account is earning 0% interest (actually negative interest), whilst big investment banks earns 2-4% by buying government bonds. Repugnant, outright robbing the poor to line the pockets of the rich. Can you figure this one out now???

Big businesses avoids paying tax, so forces government to borrow, paying money to the rich.

Is this entire situation fair?

That is what Japanese people will get for voting LDP.

Poor pays to support the rich