Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

IMF recommends Japan sales tax hike (to 15%... In addition to income tax; A disaster we don't want!)
UPI.com ^ | July 14, 2010

Posted on 07/15/2010 1:31:50 AM PDT by xzins

Japan should gradually triple its sales tax to 15 percent to stabilize the country's finances, the International Monetary Fund recommends.

The IMF suggested Wednesday following annual talks with Japan's government and the Bank of Japan that beginning in fiscal 2011 there should be "a modest consumption tax hike," Kyodo news service reported.

''A gradual increase of the consumption tax to 15 percent beginning in fiscal 2011 and distributed over several years, could generate 4-5 percent of gross domestic product of revenue," the IMF said.

The international financial organization said the sales tax hike could be paired with reduced personal income tax allowances and corporate tax reform to stimulate domestic investment.

Japanese Prime Minister Naoto Kan's broaching the idea of a sales tax increase from the current 5 percent is considered a key factor in the losses sustained by his Democratic Party of Japan in Sunday's House of Councillors election, Kyodo said.


TOPICS: Front Page News; News/Current Events
KEYWORDS: fairtax; irs; overtax; tax; taxes

1 posted on 07/15/2010 1:31:53 AM PDT by xzins
[ Post Reply | Private Reply | View Replies]

To: All
The international financial organization said the sales tax hike could be paired with reduced personal income tax allowances and corporate tax reform to stimulate domestic investment.

These people are insane if they think this will "stimulate domestic investment"

The IMF apparently fully supports Obamanomics.

2 posted on 07/15/2010 1:33:02 AM PDT by xzins (Retired Army Chaplain and proud of it. Those who truly support our troops pray for their victory!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: xzins

The price of demographic inversion?


3 posted on 07/15/2010 1:43:27 AM PDT by gusopol3
[ Post Reply | Private Reply | To 1 | View Replies]

To: gusopol3; Man50D; AmericanInTokyo

going from a 5% sales tax to a 15% sales tax sure is inverting something.

Of great interest to Americans should be the fact that Japan ALREADY has a sales tax and an income tax and corporate taxes and the politicians still don’t have “enough” money.


4 posted on 07/15/2010 1:46:34 AM PDT by xzins (Retired Army Chaplain and proud of it. Those who truly support our troops pray for their victory!)
[ Post Reply | Private Reply | To 3 | View Replies]

To: xzins

discourage consumption and lose income tax from corporations


5 posted on 07/15/2010 2:12:55 AM PDT by wiggen (Government owned slave.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: xzins

Stupidity!

If they raised the consumption tax that high, every single Japanese household would go into immediate budget lockdown. No eating out, no new clothes, no luxury items and certainly no big ticket items like cars, refrigerators or washing machines.

You have never seen frugality until you have seen a Japanese family seriously on the cheap!

A raise to 10% is just barely doable. Nobody likes the idea, but most of the public is resigned to the necessity. They can do the math.

But 15%? There is not a chance in the world that the Diet would approve that.

They’d be lynched!!!


6 posted on 07/15/2010 2:13:41 AM PDT by Ronin
[ Post Reply | Private Reply | To 2 | View Replies]

To: Ronin; Man50D

I am firmly convinced that any income tax will always be unfair, unethical, and a springboard to socialism.

I’m equally convinced that any nation could easily survive with only a 5-9% sales tax and a few selective tariffs and fees. And I think they’d have more money in the long run.


7 posted on 07/15/2010 2:24:43 AM PDT by xzins (Retired Army Chaplain and proud of it. Those who truly support our troops pray for their victory!)
[ Post Reply | Private Reply | To 6 | View Replies]

To: xzins
I am firmly convinced that any income tax will always be unfair, unethical, and a springboard to socialism.

You and Karl Marx. That's why he included a heavy, progressive tax on productivity as a plank in his Communist Manifesto.

I’m equally convinced that any nation could easily survive with only a 5-9% sales tax and a few selective tariffs and fees.

Tariffs and fees are other names for a tax. A tax by any other name.
8 posted on 07/15/2010 3:22:22 AM PDT by Man50D (Fair Tax, you earn it, you keep it! www.FairTaxNation.com)
[ Post Reply | Private Reply | To 7 | View Replies]

To: xzins

Yep. It SUCKS allright. We have our share of dense saps over on this side of the pond, too, donchya know.


9 posted on 07/15/2010 3:28:54 AM PDT by AmericanInTokyo (Donating to FREE REPUBLIC will allow you to "freep" with a clear conscience...)
[ Post Reply | Private Reply | To 4 | View Replies]

To: Man50D; AmericanInTokyo
Tariffs and fees are other names for a tax. A tax by any other name.

Selective, and generally retaliatory toward those who would deny America equal access to their markets. So, yes, they are a tax. But they're also a tool against those who would take advantage of American open markets while keeping theirs closed.

10 posted on 07/15/2010 3:35:45 AM PDT by xzins (Retired Army Chaplain and proud of it. Those who truly support our troops pray for their victory!)
[ Post Reply | Private Reply | To 8 | View Replies]

To: xzins
But they're also a tool against those who would take advantage of American open markets while keeping theirs closed.

The Fair Tax will accomplish the same by taxing imports from foreign nations but will not tax items exported by American firms.
11 posted on 07/15/2010 3:45:12 AM PDT by Man50D (Fair Tax, you earn it, you keep it! www.FairTaxNation.com)
[ Post Reply | Private Reply | To 10 | View Replies]

To: Man50D

You’ll have to explain that one to me.


12 posted on 07/15/2010 3:48:03 AM PDT by xzins (Retired Army Chaplain and proud of it. Those who truly support our troops pray for their victory!)
[ Post Reply | Private Reply | To 11 | View Replies]

To: xzins

I think people (Republicans and others) spend WAY too much time on the tax side and WAY too little time on the spending side. Of course the country wants the spending, but not the taxes, so we are kinda stuck.

If I were dictator for a day, I’d turn Social Security and Medicare into Welfare programs - make them means-tested and treat the elderly just like children with regard to child support - in other words, if an old person has kids, and one of them is a doctor - then that kid should pay the cost of his parent’s old age, not some stranger’s kid, at the point of a gun.


13 posted on 07/15/2010 3:53:47 AM PDT by BobL (The whole point of being human is knowing when the party's over.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: xzins

“You’ll have to explain that one to me.”

It’s called a trade war. We tried that stunt in the early 1930s and took what could have been a strong recession and made it into the Great Depression.


14 posted on 07/15/2010 3:55:00 AM PDT by BobL (The whole point of being human is knowing when the party's over.)
[ Post Reply | Private Reply | To 12 | View Replies]

To: BobL

I don’t mind your turning them into welfare programs, but I do want you to give me my money back with interest. :>)


15 posted on 07/15/2010 3:55:55 AM PDT by xzins (Retired Army Chaplain and proud of it. Those who truly support our troops pray for their victory!)
[ Post Reply | Private Reply | To 13 | View Replies]

To: xzins
You’ll have to explain that one to me.

Exported goods are not subject to the FairTax, since they are not consumed in the U.S. but imported goods sold in the U.S. are subject to the FairTax because these products are consumed domestically.
16 posted on 07/15/2010 3:57:37 AM PDT by Man50D (Fair Tax, you earn it, you keep it! www.FairTaxNation.com)
[ Post Reply | Private Reply | To 12 | View Replies]

To: BobL

I’d use it only as a response. I see no reason to give country X free access if it doesn’t do the same. The tariff will make their version of Product Y more expensive since they’ll have to pass it on to the customer or eat it, and I don’t see them eating it.


17 posted on 07/15/2010 3:58:00 AM PDT by xzins (Retired Army Chaplain and proud of it. Those who truly support our troops pray for their victory!)
[ Post Reply | Private Reply | To 14 | View Replies]

To: Man50D

How does that prevent Country X from refusing to allow my products entry into their country?

Good explanation on the other part, though. thanks.


18 posted on 07/15/2010 3:59:12 AM PDT by xzins (Retired Army Chaplain and proud of it. Those who truly support our troops pray for their victory!)
[ Post Reply | Private Reply | To 16 | View Replies]

To: Ronin
If they raised the consumption tax that high, every single Japanese household would go into immediate budget lockdown.

But of course, austerity has to be imposed on the citizenry and not the government - the government gets to spend as much as it wants.

19 posted on 07/15/2010 4:03:19 AM PDT by garbanzo (Government is not the solution to our problems. Government is the problem.)
[ Post Reply | Private Reply | To 6 | View Replies]

To: xzins
How does that prevent Country X from refusing to allow my products entry into their country?

I was responding to your comment in post #10: But they're also a tool against those who would take advantage of American open markets while keeping theirs closed.

Right now Americans firms, on average, are at a 17% competitive disadvantage to their foreign counterparts. The Fair Tax will level the playing field by taxing foreign goods imported into the U.S. as is the purpose of a tariff.
20 posted on 07/15/2010 4:03:56 AM PDT by Man50D (Fair Tax, you earn it, you keep it! www.FairTaxNation.com)
[ Post Reply | Private Reply | To 18 | View Replies]

To: xzins

How does the present system of international welfare at the expense of domestic manufacturing and employment prevent Country X from refusing to allow your products entry into their country?


21 posted on 07/15/2010 4:04:06 AM PDT by RegulatorCountry
[ Post Reply | Private Reply | To 18 | View Replies]

To: xzins

“I don’t mind your turning them into welfare programs, but I do want you to give me my money back with interest. “

Forget it. It was spent and then some (a lot). It was given back to you in the form of high-rise housing projects that were recently blown up - in the form of money to ACORN - in helping to make the payments on 60 foot RVs that retired executives drive around in.

It’s gone. The question is whether today’s debts should be handled by us, or whether we should impoverish our kids and grand kids (which seems to be the approach at this point).


22 posted on 07/15/2010 4:05:22 AM PDT by BobL (The whole point of being human is knowing when the party's over.)
[ Post Reply | Private Reply | To 15 | View Replies]

To: RegulatorCountry

I’m not sure what you’re asking me. Can you explain it?


23 posted on 07/15/2010 4:09:06 AM PDT by xzins (Retired Army Chaplain and proud of it. Those who truly support our troops pray for their victory!)
[ Post Reply | Private Reply | To 21 | View Replies]

To: BobL

Doesn’t seem fair after the 30 some years that I’ve paid in.


24 posted on 07/15/2010 4:09:55 AM PDT by xzins (Retired Army Chaplain and proud of it. Those who truly support our troops pray for their victory!)
[ Post Reply | Private Reply | To 22 | View Replies]

To: xzins

Sounds like democrapRATS, don’t it??


25 posted on 07/15/2010 4:14:01 AM PDT by Waco (From Seward to Sarah)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Waco

yep, it’s what they want for our country

income tax, vat tax, sales tax, all sorts of fed commo taxes, fees, licenses, etc.

and it doesn’t do japan a bit of good. they’re still in the hole.


26 posted on 07/15/2010 4:17:37 AM PDT by xzins (Retired Army Chaplain and proud of it. Those who truly support our troops pray for their victory!)
[ Post Reply | Private Reply | To 25 | View Replies]

To: xzins
I remember when the Japanese sales tax went from 3% to 5%.

Not only was there a burst of buying just before it went into effect, there was an appreciable slow-down in buying after. It was widely held that the increase was a strong factor in the recession worsening for a period after it went up. (For instance, this story recounts it this way: "Japan’s sales tax was introduced in 1989 and raised to 5 percent in 1997. The increase pushed the nation into a 20-month recession and caused then Prime Minister Ryutaro Hashimoto’s Liberal Democratic Party to lose a majority in the lower house of parliament for the first time." That accords pretty much with my memory of the event.)

If going from 3% to 5% caused that much pain, I can only imagine what going from 5% to 15% would.

27 posted on 07/15/2010 4:20:35 AM PDT by snowsislander
[ Post Reply | Private Reply | To 1 | View Replies]

To: xzins

IMF, seems is is acting in a global governance capacity..


28 posted on 07/15/2010 5:25:50 AM PDT by opentalk
[ Post Reply | Private Reply | To 2 | View Replies]

To: opentalk

The IMF is a scary organization. And they are into Obamanomics. Anything that’s international should automatically be assumed to be socialist/communist. Keynesian economics is socialist, and this is just more of the same that doesn’t work.


29 posted on 07/15/2010 5:27:49 AM PDT by xzins (Retired Army Chaplain and proud of it. Those who truly support our troops pray for their victory!)
[ Post Reply | Private Reply | To 28 | View Replies]

To: xzins
Everyone's always talking about how terrible it is that we are the world's "only superpower".

Well, when did we ever dictate to countries that they should hike their taxes in such a draconian manner?

The IMF, the UN, etc. are the real global superpowers and it is Orwellian.

30 posted on 07/15/2010 5:34:24 AM PDT by Siena Dreaming
[ Post Reply | Private Reply | To 1 | View Replies]

To: Siena Dreaming

Bullseye.

We’re part of the same army.


31 posted on 07/15/2010 5:41:24 AM PDT by xzins (Retired Army Chaplain and proud of it. Those who truly support our troops pray for their victory!)
[ Post Reply | Private Reply | To 30 | View Replies]

To: Siena Dreaming

Last week, the IMF told the United States that we need to cut Social Security.


32 posted on 07/15/2010 7:57:13 AM PDT by opentalk
[ Post Reply | Private Reply | To 30 | View Replies]

To: snowsislander
If going from 3% to 5% caused that much pain, I can only imagine what going from 5% to 15% would.

The people that believe the sales tax going from 5% to 15% is a good idea are the same people that believe the trace gas CO2 going from 0.035% to 0.045% of the atmosphere will cause runaway global warming and destroy Earth.

33 posted on 07/15/2010 8:14:55 AM PDT by Reeses (Sowcialist: a voter bought with food stamps)
[ Post Reply | Private Reply | To 27 | View Replies]

To: AmericanInTokyo
I was in Japan when the 3% consumption tax was first instituted, as well as when it rose to 5%. One interesting thing was the days before the tax was implemented, then raised, was that you would see housewives at the market with shopping carts full of mostly paper consumables to get ahead of the tax, tissue, TP and the like.

I don't know if it is still true, but at the time, small business (based on yearly sales) were entitled to collect the tax, but did not have to remit it. The zeimusho simply did not have the eagerness to squeeze taxes out of the middle class equivalent to our IRS. I hope that hasn't changed.

34 posted on 07/15/2010 11:23:30 AM PDT by Vigilanteman (Obama: Fake black man. Fake Messiah. Fake American. How many fakes can you fit in one Zer0?)
[ Post Reply | Private Reply | To 9 | View Replies]

To: xzins

“Doesn’t seem fair after the 30 some years that I’ve paid in.”

Join the club. But the way to look at it is that YOU benefited from all of these social programs as it helped ‘elevate’ our society.


35 posted on 07/15/2010 3:44:46 PM PDT by BobL (The whole point of being human is knowing when the party's over.)
[ Post Reply | Private Reply | To 24 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson