Skip to comments.IMF recommends Japan sales tax hike (to 15%... In addition to income tax; A disaster we don't want!)
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.
These people are insane if they think this will "stimulate domestic investment"
The IMF apparently fully supports Obamanomics.
The price of demographic inversion?
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.
discourage consumption and lose income tax from corporations
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!!!
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.
Yep. It SUCKS allright. We have our share of dense saps over on this side of the pond, too, donchya know.
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.
You’ll have to explain that one to me.
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.
“Youll 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.
I don’t mind your turning them into welfare programs, but I do want you to give me my money back with interest. :>)
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.
How does that prevent Country X from refusing to allow my products entry into their country?
Good explanation on the other part, though. thanks.
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.
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?
“I dont 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).
I’m not sure what you’re asking me. Can you explain it?
Doesn’t seem fair after the 30 some years that I’ve paid in.
Sounds like democrapRATS, don’t it??
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.
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: "Japans 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 Hashimotos 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.
IMF, seems is is acting in a global governance capacity..
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.
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.
We’re part of the same army.
Last week, the IMF told the United States that we need to cut Social Security.
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.
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.
“Doesnt seem fair after the 30 some years that Ive 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.