The government raised the sales tax to 8% from 5% in April and Prime Minister Shinzo Abe is planning to announce in December whether he will raise it to 10% next October in a bid to rein in massive pu

he should retire,Japanese economy will come to absolute stall if he does that

Scrap it and go back to the "good old days" zhen there was no consumption tax.

Open up immigration for anyone under 40.

It's pretty obvious that the previous tax hike did not help things out at all, so raising it further is pretty much suicide. Abe needs to step down from office and admit that Abenomics was a failure so we can move on and find someone who can actually help the countries economy instead of making it worse.

If it's going to be raised (and I don't agree with 10%) it should be stretched out over many years by maybe a quarter or half point at a time. Doubling the tax over this short a time period is just crazy.

Delay for a couple of years so the economy can strengthen, and then raise gradually by 0.1% per month until the government finances stabilize.

For the long-term health of Japan's financial situation, it should be raised. But given the fact that Abenomics has not worked, the economy could not stand the jolt right now of raising it. Best to postpone at least a year from planned date.

It is clear what he should do — resign!

Such a dilemma, the majority votes that he should resign but he doesn't seem to be fond of that idea despite the repeated attempt of failing.

Step down, of course!

I agree with the consensus, Abe's days are over - if they ever were.

Bye Abe, go home and nurse your tummywobbles.

Time for the next puppet!

Put it back to 5%; then resign.

This is a no-brainer. He should commence another massive spending spree to "offset the negative effects" of the previous and the next tax increase to swell the public debt even further... wait a minute... nah, he should put it back to the original 3%, cut government spending back to the level where the government doesn't spend more than it takes in, then resign.

Politicians belong to the same faction of merchants or work for them. As such, they legislate to their benefit. Consider the States with no income tax. They make up for it with higher sales tax, etc. You can only consume so much and once you have purchases major commodities, it is not like you have to replenish them every year. So, the rich gets away from being tax on heir earnings and whatever he pays in consumption is insignificant to his earnings. But for the poor, the additional sales tax every time he buys groceries, it is a big dent in the pocket, (that is me where I am now). This sales tax is no difference of a tactic to protect interests of the rich. Why not increase personal income progressively according to income brackets. I do not mind paying 50% tax over income in excess than a million dollars, as long as I can keep 500K. I agree with Probe, if not, set back at 3%, and redo the personal and corporate income tax. What good is it to have billions of dollars hoarded in banks by corporations that do not produce additional spending?

Why not increase personal income progressively according to income brackets. I do not mind paying 50% tax over income in excess than a million dollars, as long as I can keep 500K. I agree with Probe, if not, set back at 3%, and redo the personal and corporate income tax. What good is it to have billions of dollars hoarded in banks by corporations that do not produce additional spending?

This does not really work because the tax paid by any particular group of people is eventually spread throughout the economy. The top 10% of income earners employ nearly half the people in the country. According to a CBO study, 70% of the cost of their tax is passed on to their workers in the form of reduced salaries or benefits, part is passed on to consumers. Another point is that the top 10% also account for more than 30% of national consumption. When their taxes are increased, they also compensate by reducing their spending, the effect of which is felt by those who produce the things they buy. If you raise their tax to 50%, the lower classes will shoulder more of the burden. How much tax is hidden in the cost of the goods you buy? Much more than you think, and the source of this added cost is progressive taxation being passed on to you.

Companies do not "hoard" money, in normal circumstances almost every penny of money they possess is reinvested. But they hold onto their money if they can't find a reasonable place to invest it. Most companies are more than a little worried that another financial crisis is in the making, and they are going to keep what money aside so that they can so they can keep things going, and keep their employees paid should the crap hit the fan again. Remember what happened to GM? And how much money are the likes of Sony, Panasonic, Hitachi, Sharp, sitting on? Most of these companies are not sitting on cash, they are sitting on vast amounts of debt.

Banks are not hoarding money. Have you ever heard of the Volcker rule? This rule requires that banks keep at least 8% of their assets in cash, so they can give money to depositors should there be some kind of run on their bank. Most banks do not have that much set aside in cash, most of their assets are actually debts, upon which they earn money. Banks are slowly readjusting so they have 8% cash on hand to comply with the Volcker rule, but this extra 2% to 3% that they must now sit on is money which cannot be loaned out or invested.

The Japanese people are heavily taxed at all levels. We do not need more tax. What we need is less spending.

There is an 8% sales tax where I live. For small purchases, it is hardly noticeable. For purchases over a few hundred dollars, it becomes very painful.

Over a $1000? I will buy only what I absolutely have to if at all.

Cut spending!

I have no dramas with the 10% sales tax (we went from 5% to 10% 20 years ago in Australia), on two conditions:

Govt. takes a serious look at itself and cuts spending (examples of this as long as your arm) Actually enforce pay increases this time (where were they back in April as promised?)

Tax corporations higher and spend less on pork-barrel projects.