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March 28, 2006
Screwed! Part XIV
So the budget was submitted to parliment, along with a lot of reports and statistics on the Japanese economy.
While things may be looking up for the market in the short run, the news continues to be very bleak for the common sap on the streets.
In short, the government is still spending too much money (a large portion of it just to pay maintanance on the ridiculous amount of debt that it has been building up over the last few decades), and the only way to pay it off is to raise taxes.
Not the nice, gentle 2-5% bumps that they have been doing over the last few years. No, these are big, hairy monster taxes with TEETH!
In one report an advisory committee ells the Finance Ministry that one way to balance the books would be to raise the consumption tax by 17% over the next 10 years. This course make the assumption that in spite of such a tax hike, the economy would continue growing and income levels continue to increase at the current rate.
Yeah, that's a pretty reasonable plan.
Well, it's either that or they could just reduce government spending by 68%.
yup... totally screwed!
Kyodo: 22% consumption tax needed if Japan goes without outlay cut: panel
Posted by Kakyou at March 28, 2006 05:45 PM
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