Kan prods Ozawa to resign, calls for tax reform

Oh oh. I quite like Japan's tax regime. Things are gonna change and give me less. Boo.

"Despite drops in his approval ratings, Kan told his first news conference for the year that he had no plans to dissolve the House of Representatives for a general election."

A tell-tale sign that his time will soon be over. Anyway, didn't he promise he wouldn't bring up the tax issue on his dime? I'm going to try and get this straight, though; so far 2011 has offered:

1) a cut in corporate taxes

2) the cutting of tax exemptions for families with a young child

3) a new environmental tax for people who use petroleum products

4) a limit on the eco-points

5) possibility of raising consumption tax

Man... Japan is REALLY screwing itself over. Happy new year!

I still just don't see the rational(political or practical)of raising the consumption tax that much. Raising it 1-2% is large increase. But doubling it? Why he persists with that is beyond me.

paulinusa: "But doubling it? Why he persists with that is beyond me."

It'll instantly give them the money to make new train lines and highways and not have to use that money for pension or other things they've messed up -- they can pass that buck onto the next guy.

It's the same the world over. The only person who makes any sense is US politician Ron Paul. And he's a Republican? All confused!

Anyway, the point is the monetary system has been flawed for years. Most of our taxes go to paying off debt created by banks and when banks get into trouble more tax payer money gets thrown at them to keep them alive. Right wingers who claim more taxes are bailing out lazy poor people are completely missing the point. Our taxes are helping the insanely rich.

This is why it's all bogus. Liberals and Conservatives continues to throw insults at each other, without realizing we're all being screwed.

Yep, Ron Paul has it right and it's the same in Japan. Both parties are useless to the people, only to big business. Expect more taxes and less benefits.

Moderator: Ron Paul is not relevant to this discussion. Please stay on topic.

Kan also called for cross-party cooperation to rebuild Japan’s troubled public finances, stating his aim to craft a clearer reform plan around June for the tax system amid rising social welfare costs.

what costs are involved here ? social welfare like pension funds are payed for in adavance by the user of the japanese system in japan nothing if free its a user pays system where health insurance and pension funds must be payed ! its ilegal not too have health insurance so everybody must pay the freeways and there toll fees which must be raking in so much yen and yet years ago there was talk of getting rid of those road toll fees but that was just that ..talk my point is in this user must pay system where does all the money that has been payed by the people go?in any other language its callled gross miss management and really quite criminal

How about we decrease all taxes by half and spending by 3/4? Can't do it? Start by canceling the pension system, withdrawing from the UN, and not giving any more foreign aide.

If Jpn cut its frigging concrete budget by 30% this year then 5% there after for 2-3yrs Jpn wud be flush with ca$h!

Until the idiots who fleece the country stop funding the porky pig false economy we will continue to be screwed!

Kan said Japan’s stance on whether to join talks for a regional free trade agreement known as the Trans-Pacific Partnership

The above is a problem a country like Australia which use too produce alot of its own Produce citrus and other fruits has long ago forgone this practise in favour of this so called "Free Trade" agreement has caused the cost of living there to rise astronomical The people that want Japan to agree with this Trans-Pacific Partnership want Japan to stop producing there own rice so they can purchase rice from other countrys can you imagine this if it were to really happen absolutely crazy is what it would be the cost of living(eating) in Japan is very reasonably but that will change if the Japanese Government agrees to this Trans-Pacific Partnership trade agreement

Kan is a wet paper bag.

Why is it we never hear of Japanese PEOPLE being able to force out their poor politicians? It always has to be a game of words between men in the big house. Can't his constituents force a referendum and have him chucked?

saborichan:"Why is it we never hear of Japanese PEOPLE being able to force out their poor politicians?"

Japanese can force a recall/election and it has been done, albeit I do not know if it has ever been done a the national level but it has been done at local levels in prefectures and cities.

It would be up to the local constituency of his riding to collect enough signature of eligible voters to force a new election and I doubt that the people in his riding care to do that seeing he has brought them a lot over the years.

It is pretty much the same in other countries, only those that directly elected their representative can force a new election and that is only if they collect enough signature for confirmed eligible local voters.

Why is it we never hear of Japanese PEOPLE being able to force out their poor politicians?

Because in most countries people don't care that much about politics, except at election time. Even when they have the power to remove bad politicians they usually just go "meh".

It'll instantly give them the money to make new train lines and highways and not have to use that money for pension or other things they've messed up -- they can pass that buck onto the next guy.

Actually, it was the other way around. The specific tax revenue (gas tax, etc) which was earmarked for road improvements/maintenance/constructions were merged to general accounts to pay for short fall in pension or other things.

Desperate times require desperate measures. Start by drastically reducing the amount of national pension benefits, the "concrete" budget, all foreign aid and adopt hefty cuts in govt. spending across the board. Follow that with a 2-3 year sales tax holiday and permanently exempt food, medicine / medical care from sales tax.