Raising sales tax top priority japan

[Nando]

Oh boy, here go import prices! 

http://www.tokyotimes.co.jp/2012/raising-sales-tax-top-priority-japan-says-oecd/

Japan must raise its sales tax beginning with 2014, if it wants to keep under a control the public debt, which is set to increase further from this year’s level of 214 percent of GDP to 223 percent next year.

The conclusion was stated in a report by the Organization for Economic Cooperation and Development, based in Paris, France.

Japan’s public finances are pushed further into uncharted territory, OECD said, so raising the sales tax from 5 to 10 percent by 2015, according to prime minister Yoshihiko Noda’s plan, is a “top priority”, while balancing the budget and reducing the public debt is “essential”, according to the organization.

The alternative to these measures is that the government would have to increase its borrowing costs, the report said.

Japan was recently criticized by the chief of the Organisation for Economic Cooperation and Development (OECD) for how it is running its economy. The country needs a bigger “sense of crisis”, said Angel Gurria, the secretary general of the OECD, an organisation of the richest countries in the world.

[SuperDeadite]

LOL France.

[storino03]

As long as it helps Japan get out of debt, I'm all for raising sales tax (even in other countries).

[SamIAm]

As an American, it gives me some small amount of reassurance to see that there's another large first-world country that's not only in debt, but has higher debt-per-capita than my homeland.

Then I remember that I live in that country. 

I think we should start placing bets on when Japan's national retirement pension fund is going to implode and utterly vanish. Remember that the first Japanese baby-boomers, born in 1947, are turning 65 this year, while the birthrate has been below 2.1 children per woman since the late 70's and has been in the basement since the early 90's.

My money's on 2021. Just a hunch.

[spenoza]

Well, if they'd stop being so xenophobic and actually let Koreans and other southeast Asians emigrate to Japan and work and contribute to their support structures I think the problems would start to ameliorate. Especially given how many half-Japanese are denied citizenship.

[SamIAm]

To be honest, I think the birthrate crisis is a good thing, in a way. It's really going to force the Japanese to deal with so many of their social problems that they've preferred to ignore until now.

Being here is a trip, but in its present state, I don't think I want to be here forever. I might bail to Korea or China in another couple years.

[SignOfZeta]

As an American, it gives me some small amount of reassurance to see that there's another large first-world country that's not only in debt, but has higher debt-per-capita than my homeland.

They're pretty much all that way. While the US seems to lead the world as far as the number of people who are oblivious to just how much 15T is and what kind of measures are going to need to be taken in order to pay it off, huge ammouts of debt are normal for England, France, everyone.

[Nando]

Being here is a trip, but in its present state

How so? Well besides the obvious cultural differences, which can be HUGE!

[kazekirifx]

To be honest, I think the birthrate crisis is a good thing, in a way. It's really going to force the Japanese to deal with so many of their social problems that they've preferred to ignore until now.

agree

[rag-time4]

Why dont they cut spending instead of raising taxes?

[SignOfZeta]

Why dont they cut spending instead of raising taxes?

You're right. They should just let that nuke plant melt down and let God sort em out.

[Nando]

Why dont they cut spending instead of raising taxes?

Because it's all about cancerous growth. Profits over people etc, etc, etc.

Japan is a good economic model for what is waiting for us in the near future.

[SuperDeadite]

Considering the state of the USA, spending cuts are clearly the stupidest idea ever.

Japans big problem is the shrinking population is simply not enough to cover the huge amount of old people who get nice pensions and free medical care.  Once that huge group dies off though, things will be interesting to see...

[rag-time4]

Why dont they cut spending instead of raising taxes?

You're right. They should just let that nuke plant melt down and let God sort em out.

The nuke plant did melt down. The government tried to tell everyone that it wasnt that bad. If youre saying that some government programs are worthwhile, I agree. But to say that every yen the government spends is necessary is probably totally unreasonable.

Considering the state of the USA, spending cuts are clearly the stupidest idea ever.

Japans big problem is the shrinking population is simply not enough to cover the huge amount of old people who get nice pensions and free medical care.  Once that huge group dies off though, things will be interesting to see...

Only problem is the medical care isnt really free.

As far as the US, I think we would do very well to slash our military budget and close down all of the bases we have all over the world. I think we have plenty of other areas where massive spending cuts are in order. I dont know much about what Japan's government spends its borrowed money on but with such a massive debt its obvious that the medical care isnt free...

[TR0N]

LOL France.

I thought it was lol greece