Read my flips

Prime Minister Shinzo Abe, who a few days ago was indicating that he was leaning towards a consumption tax increase this autumn, now is promising he will do his utmost to avoid raising the tax.

When asked about the consumption tax, Abe replied: “At this point, we still don’t have exact numbers on how large the revenue deficit is, so I can’t answer that question. But we will do our utmost to not raise it”, and re-stated that the governments stance is to cover the deficit through a natural increase in tax revenue, brought about by economical growth, the Yomiuri Shimbun reported.

The consumption tax rate is an extremely sensitive topic in Japan, and Abe came under fire when he indicated his willingness to raise it. This, in addition to a string of party scandals and government bungling of social insurance account management, has led to a plunge in the support rate of the ruling Liberal Democratic Party and in Abe’s administration. . . all just a scant few weeks before an Upper House election scheduled for July 29.

2 Responses to “Read my flips”

RYO Said:

It’s almost as if all of these controversial statements and scandals of late have been orchestrated to lead to a deliberate election catastrophe for the LDP. Yet, I get the distinct feeling that the party won’t suffer as badly as one might expect a party in the same circumstances in other democratic jurisdictions.

On a bit of a side note, I was entitled to vote during my brief stay in Japan almost a decade ago and recall how difficult it was to choose candidates on the basis of specific policy stances.

overoften Said:

So Japan isn’t in the economic pits of despair any more, but they still need consumer spending to take off. And it hasn’t. Why? Low confidence in the economy and the government. Fear over pensions. It all means folks are holding on to their money. Hike up consumption tax and you kill any hope of the vital increase in consumer spending. It’s economic suicide. Any politician worth his salt should be distancing him/herself as far as possible from any such notion.

Leave a Reply

Design: Dao By Design | Powered by WordPress