How are Japan’s tax increases working?

How are Japan’s tax increases working?

Rising Sun movieGiven the desire for even more tax increases for American and California, how are the recent  tax increases working in Japan?

TOKYO (AP) — Japan’s economy shrank more sharply in the second quarter than first estimated and the latest indicators suggest only a modest bounce back since then.

The world’s third-largest economy contracted at an annualized rate of 7.1 percent in the April-June quarter, according to updated government figures Monday. The initial estimate released earlier this month said the economy contracted 6.8 percent. Business investment fell more than twice as much as first estimated.

The economic crash was preceded by a brief “boom” of 6 percent annualized from Jan. to March as people and businesses went on a buying spree to avoid the onrushing tax increases.

If you’re old enough, you remember the threat Japan’s economy supposedly posed to America in the 1970s and 1980s. The late Michael Crichton published a 1992 novel about it, “Rising Sun.” The novel was made into a 1993 movie starring Sean Connery and Wesley Snipes. Ironically, Snipes himself was imprisoned for allegedly violating America’s own preposterous and confiscatory tax edicts.

Then around 20 years ago Japan began committing economic seppuku through high taxes, wild deficit spending and preposterous regulations. One “lost decade” turned into two. Now it looks like it’ll be three.

According to World Bank data, Japan’s national debt is 197 percent of GDP, higher even than bankrupt Greece’s 164 percent and more than double America’s 94 percent.

No wonder China’s economy has been soaring. The governments of its two major competitors, America and Japan, are engaged in a suicide pact to see which first can tax and spend its economy to death.

6 comments

Write a comment
  1. Donkey
    Donkey 8 September, 2014, 18:54

    The RAGWUS feeders live in fatasyland!!! 🙂

    Reply this comment
  2. LetitCollapse
    LetitCollapse 8 September, 2014, 20:41

    Japan has been on life-support for 20 years. This is no laughing matter. Japan is not Greece in terms of global financial influence. As the world’s 3rd largest economy when Japan’s bubble bursts it will be the start of a global economic calamity that will make 2008 look like a Sunday walk in the park. Financial Guru Kyle Bass has explained it very clearly. Japan is the godfather of ‘print and spend’. QE has kept Japan afloat. But the debt load has risen to such a level that there is no other choice than to tax the crap out of the people to reduce the fiscal deficit in attempt to control inflation. Once interest rates rise 2% it will require 80% of Japan’s current revenues just to pay the interest on the debt. lol. I personally thought that Fukashima would be the event to cause the 1st domino to fall. I was wrong. But I fully expect to wake up one morning in the next 3 years to the headlines “Japan Suffers Bond Market Dislocation”, which will result in a global financial avalanche. Before we reach that point I think the global PTB will instigate a global war in attempt to avert a full-on financial crisis. If you question that look what’s happening in the ME and Ukraine. It’s very difficult to accurately pinpoint a timeline. But the writing in all over the wall. War is the only way out.

    Reply this comment
  3. californianative
    californianative 9 September, 2014, 06:43

    This will never happen in California. You all keep forgetting, California is the 8th largest economy in the world not some little podunk inbred country like Japan who is only the …. let me see…. Oh,… never mind.

    Reply this comment
  4. LetitCollapse
    LetitCollapse 9 September, 2014, 10:51

    “some little podunk inbred county”?

    I got news for ya. That ‘little podunk inbred county’ happens to hold $1.1 TRILLION in US debt. 7% of total US debt. If Japan’s bond markets default do you have any idea of the tsunami effect that would have on the US economy – the price of YOUR goods and services and our employment market? It would be the equivalent of 4 Fukashimas happening simultaneously.

    California is a lost cause. The leaders have already sold us out. We already have the highest poverty rate, according to the Feds, of any other state in the union and the state leaders (even many republicans who are complicity silent on the matter) who support importing massive amounts of poverty from 3rd world crapholes that we, the taxpayers, are forced to finance. Jerry Brown told immigrants in the audience when he introduced the Mexican president that it didn’t matter if they had permission to be in the United States – that they were welcomed in California!!! LOL!!! This is a guy who took a sworn oath to uphold the laws of the land!!! LOL!!!

    At least the Japanese who inhabit an island with few natural resources are making an honest effort to save their nation. For that they deserve credit.

    Reply this comment
  5. DavidfromLosGatos
    DavidfromLosGatos 9 September, 2014, 17:41

    Good choice to have Wesley Snipes on a post discussing taxes. He knows a thing or two about taxes.

    Reply this comment

Write a Comment

Leave a Reply


Tags assigned to this article:
JapanJohn Seilertax increasesHiroshima

Related Articles

SEIU Rewards Nestande With Cash

Steven Greenhut: Assemblyman Brian Nestande, the Palm Desert Republican who recently attended a “no more cuts” rally sponsored by the

Unions sue to stop pension reform

Steven Greenhut: San Francisco Public Defender Jeff Adachi’s modest pension reform measure has drawn the predictable lawsuit from the city’s

CalWatchdog Morning Read – July 13

Law enforcement accountability measures stalling in Sacramento Californians dig Gov. Brown UC Berkeley’s chancellor under investigation SD mayor leads opposition