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The Japanese government says the consumption tax has to be raised to help pay for the nation's ballooning social welfare costs. Do you agree with this view?
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18 Comments
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rlperez@hotmail.com.au
Less supporting US arms manufactures and more supporting social welfare.
Aly Rustom
raise corporate tax first. Plus, if you want to raise the consumption tax, raise the minimum wage as well so purchasing power doesn't go down.
Nobnaga
this is really stupid and i don't like it consumption tax my B***
JeffLee
No, because the idea that "funds" were needed to pay for govt spending originates from era of the gold standard, back when fiscal discipline was necessary. The ditching of the gold standard and introduction of fiat currencies changed all that, and yet the old-fashioned fund structure remains.
This round-peg-in-a-square hole arrangement explains why Japan and other developed countries have such large fiscal deficits, among other imbalances, not to mention low growth. Japan can "afford" its social programs by printing its own money, as indeed it has been doing with no ill effects. The tax hike was a political move, not an economic one.
Tom
Zero tax on food...real food, medicine, diapers, school clothes etc. Tax everything else, not the necessities.
jeancolmar
No, the consumption tax is being raised for the record breaking military budget, that is Abe's daydream of turning Japan into a warfare state like the U.S.
kibousha
Mostly welfare to sustain old people (a.k.a. nenkin), which is okay if the government doesn't totally ignore education for young people.
Cheeba
The people of Japan will have a pound of Abe's flesh soon.
Vince Black
Again the problem can be traced back to the aging population. Fix that and a lot of problems get fixed. People over 75 need to be taxed here
Toasted Heretic
How are you going to tax those people suffering from dementia, Vince? People who have been paying their taxes all their lives? Some of them desperately low on money.
Tax the rich.
sf2k
Japan became an arms dealer under Abe in 2014 so I can't think they have anyone's welfare in mind
fxgai
The best system of taxes is one that is dead simple to administer and therefore difficult to evade or avoid.
The best thing to do with tax revenues is to assist those who are in need (and not those who can get by in life without assistance from others).
KISS
Mocheake
I don't mind the tax but hopefully they use 100% of it for social welfare.
semperfi
.
It's to pay for it's growing military expenditures
.
Disillusioned
I don't agree with it because we heard the same guff when they introduced the first sales tax increase, but the money was syphoned off into other coffers. This government is so full of crap I can't believe anything they promise.
First sales tax increase +3%
Pay off national debt - Didn't happen!
Support social welfare - Didn't happen!
Increase child care - Didn't happen!
Increase salaries with corporate tax cuts to offset increase - Didn't happen!
Second sales tax increase +2%
Support social welfare and social security - Unlikely!
Introduce free child care - Unlikely!
Increase military spending - Definitely!
darknuts
Civilization inevitably makes people spoiled. What was once luxury is now a human right. It's not suprising that people want the benefits of social welfare but don't want the cost associated with it. People wanting to have their cake and eat it too is one of the causes of social decline.
jeancolmar
Japan's skyrocketing and useless military expenditure. The ease on corporate taxes. Wake up, Japanese.