Sunday May 27, 2012

LDP once again refuses to discuss sales tax hike with DPJ

TOKYO —

The opposition Liberal Democratic Party on Thursday said it would not take party in talks with the ruling Democratic Party of Japan on a proposed sales tax increase.

LDP Secretary-General Nobuteru Ishihara outlined his party’s stance after a meeting of all the parties’ secretaries-general. He reiterated the LDP’s long-held stance that Prime Minister Yoshihiko Noda needs to dissolve the lower house and seek a public mandate on the issue.

Ishihara said that the DPJ has to stop thinking it can decide policy behind closed doors.

Noda says Japan urgently needs to reduce its debt burden as the nation ages and its labor force shrinks, putting a greater burden on the social security and tax systems. He has promised to submit a bill by the end of March to raise the 5% sales tax in two stages, to 8% in 2014 and to 10% by 2015.
The plan is unpopular not only among the public and in the divided Diet, but within Noda’s own party. Opponents argue that raising taxes would hurt the already weak economy. 

Noda has hinted that the DPJ will go ahead and submit the bill without the opposition camp’s approval, if necessary.

Japan Today

  • 0

    some14some

    Noda has hinted that the DPJ will go ahead and submit the bill without the opposition camp’s approval, if necessary.

    good, "The best way to get approval is not to need it " Hugh Macleod.

  • 0

    Hide Suzuki

    "Ishihara said that the DPJ has to stop thinking it can decide policy behind closed doors."

    Yeah, sure, because the LDP never made any decision behind closed doors, right ? Both the DPJ and LDP suck, so we need to choose the lesser of two evils, I prefer the DPJ for now.

  • 0

    marcelito

    Ha...this from the LDP that proposed the sales tax rise in the first place at the last election? But totally expected - the only thing we ever hear from LDP is " Nah nah... We won`t co operate with ( ...fill in the issue of the day )..you have to dissolve house and call an election." Just like little spoiled brats. Beyond joke. Democracy in its current guise has proved unworkable in this country.

  • 0

    globalwatcher

    <<Opponents argue that raising taxes would hurt the already weak economy.

    Or go broke.

  • 1

    zurcronium

    LDP runs up the debt and then refuses to pay for it. Just like the republicans in the USA. Retread conservatives are the same world over.

  • 0

    paulinusa

    It's obviously the politically expedient position to take, "We're opposed." So what is their position on any sales tax hike? Doubt they'll stick their neck out with a serious proposal.

  • -5

    Dog

    As much as I dislike the LDP, they are not at fault here. If any party is at fault, it's the DPJ, but the reality is that the Japanese political model is the real fault line. Over the last 60 years Japan has tried to take the best of both liberal democratic worlds, the Anglo-Saxon (excl US) parliamentary system, which produces strong government but pays a democratic price, and the US/European congressional/assembly system, which sacrifices strong government for a more democratic/representative system. The result has been, for Japan, the worst of both worlds.

    According to the parliamentary principles, the DPJ has no right in calling for LDP cooperation and the LDP is merely behaving like an effective opposition. Of course the LDP should be reacting as an opposition government who formulates their alternative policies with the nation in mind,and ignore, except in the most extreme cases, regional interests. The DPJ government should likewise be formulating their policies and have a strong whip system to ensure their fellow party MPs do likewise. We all know that none of this happening.

    If the Japanese are to implement a proper parliamentary system, which has been their intent since the 80's, then they must first change the electoral system and do away with representative proportional representation, and then they must diminish the powers of the upper house so that at best the upper house can only delay legislation.

    At present the Japanese political system is a mess and it really doesn't matter who or what controls the reins of govt, there is a paralysis of nobody's making. Time for the army to enter politics and for the rebirth of the Seiyukai party of the 1930's. This isn't very different from the post Taisho politics of the late 1920's and the present world economic crises gives it a frightening 1930's deja vu feeling.

  • -2

    Moskollo

    Take a look at what raising taxes has done to the uk, riots a depressed nation and an approaching double dip recession. Raising taxes will NOT stimulate growth in public spending, Japan's present policy is working, if it's not broken don't fix it..

  • 3

    globalwatcher

    reality is that the Japanese political model is the real fault line

    the US/European congressional/assembly system, which sacrifices strong government for a more democratic/representative system. The result has been, for Japan, the worst of both worlds.

    they must first change the electoral system

    @Dog, I just love to read your post as always. Very insightful post. I wonder how Japan can change the political model that works? Everything in Japan has been badly broken. I just do not see any solution to this mess. The problem is just too big to repair.

  • 1

    GW

    Ishihara said that the DPJ has to stop thinking it can decide policy behind closed doors

    ishihara you moron, just what do you think the ldp did for 5+ DECADES, let me clue you in, it ran the country behind closed doors the ENTIRE TIME, wracked up an obscene amount of debt, STOLE depositors $$$ from post office accounts, pilfered pension funds, created amakudari, dango, KB, poured concrete funded by taxes & more debt bloody EVERYWHERE, deny yr history, piss off yr neighbours, etc etc

    get the idea, the ldp has a s%$#load to atone for but you & yr ilk as is usual are totally utterly clueless!!

  • -2

    Dog

    MoskolloJan. Take a look at what raising taxes has done to the uk, riots a depressed nation and an approaching double dip recession. Raising taxes will NOT stimulate growth in public spending, Japan's present policy is working, if it's not broken don't fix it..

    Wrong on all points.

    With the UK, I think you're confusing raising taxes with the government's actual present policy of cutting back on public spending. Osbourne's policy of cutting the UK deficit might well please US Republicans and the money markets, but it is proving to be the biggest contributor to a depressed nation which will almost certainly enter recession in the second quarter of this year.

    Of course raising taxes will stimulate growth in public spending. By definition government spending is public spending and unless Noda and gang are syphoning of the new taxes for their private use, the new taxes will be spent by the government, ergo they will stimulate growth in public spending. Whether that public spending will be spent wisely is a different issue altogether.

    However the biggest cognitive faux pas was with your last statement of Japan's present policy is working, Where do I begin? How about I leave it to the 'Spike Japan' website for you to browse to see all that is structurally and financially wrong with Japan since the bursting of the bubble. A very intelligent and well traveled Japanophile.

  • 0

    globalwatcher

    Raising taxes will NOT stimulate growth in public spending, Japan's present policy is working, if it's not broken don't fix it..

    Oh dear, this is the best misquote of 2012 Spring.

    As Dog stated above, I just do not know where to start explaining that is not true. Japan is not a Rising Sun any more as everything; politically, economically and socially, is broken down. Japan has been ruled by LPD for the past 5 decades, and they sucked juice out of Japan.They failed Japan a big time. Now Japan is left with dry bones and skeltons while more and more people are getting on to govt walfare payrolls for survival. That's a big picture I can present for you so you understand what is going on with Japan. Japan is a dying Sun.

  • 2

    JeanValJean

    Cut spending, cut Entitlements, shrink the national govt size, reduce taxes. The debt and govt weren't built in a day, nor will either be corrected in a day.

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