The Consumption Tax
The consumption tax in Japan was increased from 3 percent to 5 percent for all consumer items.
When I read this news, I thought that the tax increase meant a decrease of buying power for those on The National Pension and welfare. If the government does not increase the amount of National Pension and welfare by 5 percent, then it will succeed in gaining an extra amount for the budget. Does it mean bullying of the weak?
All consumer products are imposed the consumption tax in Japan, of course including food items. In fact, the elderly people are supported only by The Nation Pension. The first time the consumption tax was introduced to the public many of the elderly people complained about it. They said that they would not be able to maintain their current living standard.
In America, the consumption tax is higher than in Japan, up to 9 percent in some states, but it is not imposed on food. The consumption tax system is very kind for all people in America.
What will the Japanese Government do with the extra budget?
Now, my parents and their neighbors are in their sixties to nineties, but they have to clean up the park which exists in their residential areas once a month. Neither the federal government nor the city government dispatch the staff for cleaning the park. The residents worry about when they become too old to take care of the park. They wonder who will take care of the park.
On the other hand, the government is building a dam at the mouth of Nagara River. Nagara River is a precious river, because it still exists in it's natural state. The government had decided to make a dam to provide water for industrial purposes, but nature lovers opposed the plan. The wave of opposition involved a lot of people and they demonstrated at the mouth of the river, but the government didn't change their minds.
The useless dam is being built with our tax money, for the gain of a construction company.
I wish the Japanese government plans with a view of the future, and just doesn't look at the temporary gain.
What do you think of the consumption tax in Japan, is it cheap or expensive?