Incredibly, officials of the current Japanese government of Naoto Kan have once again proclaimed that instead of cutting the budget and government expenditures, Japan needs to increase revenues by increasing Sales Tax by more than 200%. Are these people insane? They have even said this in public!
Are they intentionally trying to get booted out from office? I mean, to think about raising taxes is one thing, but to say that in public!? Where are the nice men in white suits when you need them?
Hakuo Yanagisawa, who was just appointed to a government panel on social welfare, says that a "10% Sales Tax is not enough" and that those taxes must be increased by more than 200% from its current 5%.
Madness. What a looney!
Yanagisawa must be totally and completely out of touch with the lives of the people he is supposed to be serving. The question that needs to be asked is if he is crazier than the guy who just appointed him, Naoto Kan?
Writer's rendition of Japanese Prime Minister Naoto Kan
The economy is stagnate, interest rates are near zero, people's savings have dried up all the while Japan has a huge problem with a large percentage of society reaching retirement age. On top of that, Japan's debt rating was just lowered.
With all this bad news, these government wonks think that the solutions to our problems lie in increasing taxes!? These people are completely nuts.
The Japan Times reports:
The consumption tax needs to be more than doubled to shore up the government's finances, given soaring debt and welfare costs, according to a member of Prime Minister Naoto Kan's tax and social security panel. "I don't think an increase to 10 percent is enough," former financial services minister Hakuo Yanagisawa said Tuesday in an interview at his Tokyo office. "Our discussions must be based on new realities."
I wrote before that the government of this country will never recognize a crisis until it is too late. They will never understand that raising taxes and raising taxes has been tried in the past, yet our debt bomb continues to grow. Once again, I'd like to reiterate that I predict that the government of Naoto Kan will be booted from office this June.
Japan Times continues: