I've recently heard that the pathetic goverment are planning to raise taxes to 20% to help cover the cost of the tsunami effected areas. Now while the cause is good the tax hike is a fucking joke! To put it in to prospective, the tax rate now is 5%. They'll also stop child support for families. Will the goverment be doing the spending cuts that really matter such as giving other countries a shit load of cash every year? Aprarently not.
Yeah, but the Uk was 17& before that so not that big of an increase. It probably won't happen which is why I wrote "possible" but if it did, going up 15% is fucking stupid. @Cyantist, this is Japan mate. You could slaughter the first born of every family and they'd still say fuck all. Yakumo
desperate times call for desperate measures. You seriously have to see how they have it here in Greece :/
There were elections in parts of Japan yesterday, maybe that had something to do with it? I am sure there was a lot of "Vote for government stooge and he will raise taxes, cut child benefits, devalue the yen, force your daughter to work in the porn industry, etc..."
Just google "Japanese consumption tax" and you'll likely find a million hits in English. If they go up (which is now likely at this point) it will be 8%. 20% will kill the economy, plain and simple. Consumption would go the way of the dodo bird.
It'll never happen. The government won't allow consumer spending to go down during an infrastructure/rebuilding investment phase. I'm betting they'll allow devaluing of JGBs before they let the country go into a recession.
How far do you think they'll devalue them? "Go into a recession"... Surely you mean "sink further into".
I've heard the 20% number for years, something about it being their ultimate goal. It will probably go up but it won't go from 5% to 20%. You can't do that to an economy overnight, not one as advanced as Japan's.
