Abe Considers Consumption Tax Increase To Boost Economy

Abe Shinzo’s election as Prime Minister of Japan for the second time was due in no small part to his promise that he would improve the flagging Japanese economy.

His latest policy suggestion is to raise Japanese consumption tax from 8% to 10% as a means of continuing economic growth while increasing tax revenues.

But 2ch netizens are not convinced of the idea, with some commenters suggesting that it would damage Japan’s economy by prompting a decrease in consumer sales.

From Reuters Japan:

Prime Minister Abe: “I’ll Judge The Risk Of Raising Consumption Tax, And I’ll Take Responsibility For The Outcome

[Reuters Tokyo, 22nd September]
In a recent television interview, Prime Minister Abe Shinzo said that in terms of the risk of imposing a consumption tax on the economy, it is his responsibility to decide by October and he will have responsibility for the result.

Also, about the 8% raise to a 10% consumption tax rate, Abe explained that he would take into account whether risks to the world economy would actualise and make judgement in response to those changes.

The interview occurred on September 17 and was aired on September 22.

Prime Minister Abe said that he has instructed Finance Minister Aso Taro and Economic Recovery Minister Amari Akira to summarise the economic policy package in such a way that the economy can move away from deflation and not throw away the chance to grow economically, as well as raise the level of consumption tax without interrupting the economy’s upswing. About the risk of the consumption tax affecting the economy he said, “That is my responsibility, and I will make my decision by October 10. The result of the decision is also my responsibility.”

Regarding the lowering of effective corporate tax rates, he pointed out that he wants to have a good discussion about whether current corporate tax rates will allow Japanese firms to succeed on a global level. He said, “I made a campaign promise to make gradual reviews of corporate taxation, and I want to uphold that promise.”

Additionally, Abe also stated about the 8% raise of consumption taxes to 10%, that, “The economy is a living thing. If it is raised [to 8%], we must makes decisions based on the changes which occur after that. It’s also important to see whether the risks in world economics are realised. We must also make decisions based on what we see happening there.”

About the problem of water pollution from the Fukushima disaster, in reply to a question as to whether he had no plan to budget for specialised frameworks in next fiscal year’s budget, he said, “I will deal with the issue properly, as I have promised to the whole world. Because of this I want to work with financial officials to ensure the necessary amount is allowed for.”

When asked whether a summit meeting with China and South Korea could occur at the next UN General Assembly or ASEAN+3 Summit, he said, “If such a situation brews, that could occur.”

From 2ch.net:


I don’t get it, it’s too abstract.


What do you mean, responsibility?
If someone kills themselves because of tax increases are you going to die too?


Funny to hear “Have responsibility” from someone who doesn’t at all understand the meaning of the word.


He’s so blasé about it all.


If he does that he’ll probably fail, right?
It’s too fast.


Without a doubt, consumption will decrease.
It’s because the LDP are scared of the future and won’t use money, w.
It’s already at the stage that it’s life-threatening, financial firms are pooling money internally so they won’t lose it.
However you look at it, it’s all over w.


Only the part where he doesn’t blame others is good, rather than increasing consumption taxes I think it would be better to shave off social security…


If the economy dives heavily, will you resign from the Diet?
Are you trying to make laws for which treasury staff could be arrested?
You speak too lightly of this, going this far to reassure voters…


No amount of responsibility will bring back people who’ve commit suicide w


Have you gone crazy from swallowing too much mass media reporting?
I wish I could believe in you until you decide, but I can’t.
You sound like the ignorant crackpot the Ministry of Finance and anti-Japanese forces think you are.

Share This Article
Help us maintain a vibrant and dynamic discussion section that is accessible and enjoyable to the majority of our readers. Please review our Comment Policy »
Personals @ chinaSMACK - Meet people, make friends, find lovers? Don't be so serious!»