Noda meets with panel to discuss tax hikes
TOKYO —
Prime Minister Yoshihiko Noda on Wednesday called his first meeting of a special panel set up to discuss tax reform, including possible tax hikes to fund reconstruction work in the Tohoku region after the March 11 earthquake and tsunami.
Noda urged the panel members to come up with ideas for temporary tax increases. Referring to Japan’s burgeoning public debt, he said that the tax burden should be borne by the current generation rather than future generations.
According to an NHK report, reconstruction is expected to cost nearly 20 trillion yen over the next five years. The government hopes, by October, to pass a third supplementary budget, expected to amount to more than 10 trillion yen, to pay for reconstruction. The rest may have to be covered by corporate and income tax increases, NHK reported.
Last Friday, at his first news conference as prime minister, Noda said recovery of the disaster-hit areas was No. 1 on his list of priorities and said tax increases might be necessary.
The question of tax hikes was a divisive issue during last week’s DPJ presidential election contest. Noda said that the government will first reduce wasteful expenditures and sell off some state-owned assets before considering any tax increase.
Prior to his election, Noda advocated higher taxes to fund the recovery effort and help tackle Japan’s public debt running at more than 200% of GDP. But at the news conference, he conceded that raising taxes at the wrong time could threaten growth.
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0
some14some
Praying to God that any such tax increase should defy all logics and ground realities and help spur Japanese Economy !
0
minello7
Just raise the consumption tax to 10% with exemptions for essential food items, children's clothing and books, and get it over with, people will adjust to it very quickly. Then bring the Corporate Tax down in line with other countries.Then create a special tax force to target all those big corporations who year in year out evade paying taxes through clever manipulation.
1
taj
Entertainment tax, please: to be levied on adult-only entertainments (so as not to impact families going to for a day out. Rather, it will hit: pachinko, clubs, R-rated and above films, ... Actually, I'd be happy with just a straight up Pachinko Tax.
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globalwatcher
His focus is on the right places. These had to be done a long time ago. He inherited all bad LDP's mistakes, and now he has to fix them all to put Japan in order.
Mr. Noda, 20 trillion yen, does it include Fukushima Daiichi Nuke clean up cost? 20 million yen is too conservative while world economists are estimating the total cost would end up to be 50 trillion yen. But this is a good start.
Mr. Noda, Japan needs a total tax overhaul iin private and business sectors. Please appoint tax lawyers, CPA and Economists who are practical and critical thinkers. Japanese corporate tax is the highest in the world. 40% corporate tax is way too high. No wonder many jobs are leaving Japan with a strong YEN. Let's lower that, so that jobs will come back to Japan. Fill all tax loophole as much as you can, so everyone staarts paying a fair share.
Mr. Noda, yes, I could not agree with you more here. Let's eliminate non performing bureaucrats who are on gov. walfare (payrolls) . Please try to modernize the gov. infrastructures and systems to the 21st century technology standards to serve for people of Japan. Try to stay slim and lean. It looks like the government is not a solution, the government is a problem-quote from Ronald Regan.
Mr. Noda, the sovereign debt ratio of Japan is the highest in the world. Only way out is to cut wasteful spending and making a pie bigger (GDP growth). That's the ONLY answer.
Mr. Noda, eventually people realize there is no free lunch, and you need to do that. However, I am against personal payroll tax hike as they are already paying too much.
Speaking about consumption tax, I only accept the consumption tax hike to tabacco, liquor, and luxury items, not on food, medicine.
Mr. Noda, you were not my choice at beginning, but I am beginning to like you. Let's rock & roll and go get it!
0
JapanGal
Medicine and clothes should not be taxed either up to age 20
-1
change
Why do you guys here think your comments and opinions are gonna be considered. Just wish that it never affect you badly and devise ways to move around it. You can scream you you want but know J politician will hear you. Even Japanese are not asked when their leaders are considering something like this that affect their daily lives
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cactusJack
temporary tax increases = ha ha ha! Yeah, right. When it expires, they just make up another one.
-1
Asagao
Of that 20 trillion yen of reconstruction costs, up to 30% will go on bribes. Nice time to be in govt eh?
1
marcelito
As long as they do as they promised - cut the waste first -too many public servants on too high salaries ..too much unnecesary expenditure at all govt levels... Then raise taxes on tobacco, booze and luxury items...and THEN the consumption tax but exempt food, medicine and essential items... aaah..time to stop dreaming
1
ExportExpert
he conceded that raising taxes at the wrong time could threaten growth.
Not as dumb as you look are you Noda san. Now just follow through with these two statements.
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globalwatcher
change, but we can try to CHANGE. We've got to start from somewhere. That's how democracy should work. Maybe I am a dreamer. But I have been trying until someone pays attention. I just deeply care for Japan. I want J. politicians to restore Japan as it used to be, so that Japanese youth will restore hope, dream and future. I want them to believe themselves that they can change. That;s all.
Pray for Japan
1
Patrick Smash
They can get all this money back by banning overtime, subsidised accommodation and taxis from the ministries. I meet these bureaucrats all the time. I will meet 4 more today. Many sit around all day and half the night earning overtime pay and huge bonuses, before taking taxis home to their subsidised luxury apartments because they don't like trains, and won't leave early because they are being paid so much. When they really have to answer questions about what they do, they inform me that they are "preparing the document". Just how important is this document? Cut the length of the document first, raise certain taxes if necessary. Never going to happen. TIJ.
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JapanGal
Sounds like a terrible job to have Pat Smash. I wish you luck. Must be like playing dentist.
2
iceshoecream
So long they don't increase my kokumin hoken (med. insurance) premiums. Five years with the same salary and somehow every year I have to pay hell a lot more money than the previous year.
1
globalwatcher
Patrick, speaking about OT issue in Japan, well I could not agree with you more.
In Japanese culture, OT is considered as a hard working, dedicated,. goal achievers at work place, And often times, OT workers get better pay, bonus and prmotions.
However in the US, OT workers are giving negative impressions that they are not efficient and productive workers to complete the task they are assigned to do. They are not top performers. The OT workers are carefully monitored and evaluated by management. If there are many OT workers causing bottleneck in process. Most OT workers will be assigned to easy jobs. The bottom line is this, the management team is responsible to a financial statement. That's how bureaucats should.
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