Keidanren calls for raising consumption tax to 10% by FY 2011

Sunday 14th September, 05:18 AM JST

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Statistician at 03:24 PM JST - 14th September

Increase income tax on high earners .
zurcronium at 04:43 PM JST - 14th September

Increase corporate taxes since J companies are making a ton of money now and not spending it. Decrease the consumption tax to stimulate sales. Cut incomes taxes on the middle class and below only. Raise the taxes on the top 5 percent who are becoming too rich now in Japan for the good of society.
proxy at 06:27 PM JST - 14th September

...or cut spending?
presto345 at 06:50 PM JST - 14th September

Keidanren are putting their asses in seats that do not belong to them.
Sarge at 09:15 PM JST - 14th September

Amazing how up until 1989, Japan managed quite well without ANY consumption tax. Then, on April Fool's Day, the government imposed a 3% tax. Everyone ( well, all the foreigners anyway ) thought it was just a joke, but when they went to the store to buy stuff, they found the price was 3% higher than before.
MrEggAndSpoon at 09:20 PM JST - 14th September

What this about? my dictionary say onsumption is eat bthe food. How they tax for that, whenyou in Restaurant?

Is it going to be 10% tax for McCdonalds restaurants?

Man, this poilitic confuse me man.
Sarge at 10:36 PM JST - 14th September

"raising consumption tax to 10%"

I bet that's gonna put a real damper on new car sales. Heck, that's gonna put a damper on sales of just about everything.
sharky1 at 11:07 PM JST - 14th September

Raising taxes to 10% in a troubled economy??? Stupid is as stupid does.
helloklitty at 05:15 AM JST - 15th September

All this discussion is meaningless without knowing what's happening to property and income taxes. One would assume those will be going down or at least some sort of tax breaks will be given for families. Anybody know?
helloklitty at 05:26 AM JST - 15th September

dictionary say onsumption is eat bthe food.

Consumption is using up any resource.
helloklitty at 05:57 AM JST - 15th September

Whoops, I just read the rest of the story - income taxes will be cut to cushion the blow.

Rampant unemployment is a likely scenario by 2011.

No, there will still be plenty of sh#tty jobs (non-regular jobs paying roughly 40% of what regular workers get and outside of social insurance programs to boot)

Let's see, non-regular jobs were 20% in 1994 and have increased to 35% or so in 2008, so in 2011 shitty jobs should account for 38% of the labor market.

Way to destroy the already bad economy

The economy is actually expanding and Asia has better economic prospects than the U.S. or Europe for the immediate future.

Anyway, Japan has a very low consumption tax rate and it needs to lower its debt ratio. Each 1% increase in consumption tax boosts government revenue by 1/2 percent of GDP.

The reason the consumption tax goes up while income tax goes down is that the consumption tax is indirect.

In America, everyone complains loudly about property tax, but it's actually so minor compared to sales tax. But they complain because it is direct. Nobody walks out of a store whining about the taxes they've just paid.

The government is shrewd. The public is stupid.
sharky1 at 07:46 AM JST - 15th September

Hellokitty...I guess you forgot about the corporate sector. The taxes paid by the consumers is shown as revenues on the books by the J-Gov, then the corporations have to pay 10%, thus reducing their profits by 13.5%. How will this affect salaries, bonuses, economic development. Importers will also be hammered hard by this tax increase, which will drive up the cost of imported goods by at least 20%, including fuel! What do you mean that no one will complain?
mikihouse at 09:39 AM JST - 15th September

Japan has no more money to support the pension system and health insurance because the bureaucrats and politicians dip their hands into it and made it their personal banks. The govt needs cash but people paying for the health insurance and pension are dwindling because population is shrinking, retiring people were increasing, jobs are becoming harder to get and thus less money. International business report says, 1/3 of Japan's working population are now temporary workers. Taxes are dwindling because people can no longer afford to pay them and the response? increase the taxes? Ironic isn't it that the government wants their poeple to pay more taxes so that they can stay in power and use the money for their own leisure...
Scrote at 01:38 PM JST - 15th September

Keidanren have a cheek: they refuse to increase salaries, despite record profits, but they are happy to burden their workers with higher taxes. It's time to raise corporation taxes and start investigating Keidanren companies for unpaid overtime and other illegal practices.
ultradodgy at 03:26 PM JST - 18th September

Insane. This is the solution to the financial crisis? Raise the tax that drove Japan into recession when it was introduced? What?