Skip to comments.Japan closer to doubling sales tax amid fiscal woes(aging population wearing down economy)
Posted on 06/02/2011 7:19:42 PM PDT by TigerLikesRooster
Japan closer to doubling sales tax amid fiscal woes
Friday 03rd June, 07:00 AM JST
The Japanese government on Thursday announced a social security reform plan that would result in a doubling of the countrys consumption tax rate to 10% in stages by the year through March 2016 and lower pension payments to the elderly with higher incomes.
The move came as the country has been struggling under swelling welfare costs due to the aging population, which have added to the governments difficulty in restoring its fiscal health, the worst among major developed economies.
But the reform initiative suffered uncertainty the same day as Prime Minister Naoto Kan said he is prepared to step down in the wake of criticism over his handling of problems following the March 11 earthquake and tsunami.
(Excerpt) Read more at japantoday.com ...
Our sales tax in San mateo California is 9 1/2%
plus 10% state income tax
With plummeting population and rising pension needs, it looks like Japan is in a death spiral. Their government must have hired Robert Reich as a tax consultant and Bill Ayers as family planning expert.
That will help. /s
Haven’t run across a case where a tax increase spurred economic growth.