The burden should be distributed broadly, mainly through an increase in the consumption tax.
Against this, expected national government revenues from the consumption tax are JPY 7.2 trillion, i.e.
Combined, taking these two steps would be big steps toward a business consumption tax.
And it surely is not the cosmic shift to a consumption tax favored by others.
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On balance, considering effects on the economy, the main source must be the consumption tax.
That's where some sort of consumption tax would come in on carbon or, more likely, on everything.
Before increasing the consumption tax, government personnel expense should be cut by 20 percent.
Other approaches are substitute taxes, possibly including a consumption tax or a tax on energy usage.
An increase in Japan's consumption tax in 1997 was widely blamed for sabotaging a recovery.
That left consumption tax, which, said Mr Takenaka, would have to rise from 5% to 14%.
Conservative economists and politicians are, once again, touting their favourite version of the consumption tax.
Back in 1984, Reagan's Treasury Department looked at replacing the income tax with a consumption tax.
To realize objectives 3. and 4, a five percentage point increase in the consumption tax is appropriate.
So with at least some of the objections to a consumption tax addressed, the positives are many.
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Many economists consider a consumption tax an efficient way of raising tax revenue, especially in a global economy.
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The government raised the consumption tax in April 1997 in an attempt to rein in the rising debt.
In addition, a consumption tax would encourage more saving in the long run.
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Elsewhere in Asia, the Japanese parliament passed a consumption tax bill this morning.
And what we get from the Ministry of Finance are proposals for raising taxes, especially, now the consumption tax.
Although the consumption tax increase is bitter medicine, most voters understand its necessity.
One would allow an unlimited exemption for saving, in effect turning the current income tax into a consumption tax.
In April it raised the consumption tax from 3% to 5%, rescinded an income-tax rebate and increased health-care contributions.
However unpopular the consumption tax may be, people like Mr Ozawa even less.
The left objects to most consumption tax proposals because they are not progressive.
Funding must come from gradually raising the consumption tax to 10 percent, and then to a further 10-20 percent range.
This would produce savings of about JPY 5.5 trillion, equivalent to a 2.5 percentage point increase in the consumption tax.
The most important question is: how to use proceeds of an increase in the consumption tax (currently 5 percent)?
Obviously, funding the basic pension through the broad-based consumption tax would lower the burden on active workers and employing firms.
As Larry Hunter, another fellow Forbes contributor has noted recently, the beauty of a consumption tax is its limiting nature.
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And because a sales tax is a consumption tax, more people will defer consumption and have capital to invest instead.
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