Economy Keidanren calls for increased taxes on wealthy to boost GDP

[thomas]

Japan's leading business group, Keidanren , has unveiled a comprehensive plan, "Future Design 2040," to revitalize the nation's economy and address its demographic challenges. The plan aims to boost GDP to ¥1 quadrillion by 2040 and proposes a tax hike on the wealthy to fuel economic growth and social welfare. Keidanren believes Japan must confront its ageing population and declining birth rate head-on. The organization suggests regional cooperation and policy innovation to stimulate local economies and alleviate the burden on social security systems. By implementing these measures, Keidanren hopes to create a sustainable and prosperous future for Japan.

Keidanren chief Masakazu Tokura​

The proposal suggests the tax hike on higher-income earners from fiscal 2025 to secure ¥5 trillion in additional tax revenue by fiscal 2034 to curb the increase of costs associated with social insurance premiums. If implemented, the tax-to-GDP ratio would rise gradually from 29.7% in 2025 to 31.8% in 2040 while the social security burden ratio will only increase from 18.4% to 18.6%. This will lessen the burden on the working population, whose disposable income will increase, and, in turn, boost consumption.

Keidanren urges tax hike for rich with eye on ¥1 quadrillion GDP

Such a move will help the nation achieve a “virtuous cycle of growth and distribution,” Keidanren chief Masakazu Tokura says.

www.japantimes.co.jp

 

[Grandpa Frank]

The old Robin Hood "rob the rich" and give to the poor economy plan never seems to work perfectly in many cases. Be interesting to see how it works out.

 

[johnnyG]

Most interesting is that it's Keidanren behind this, and not the govt. Kind of like if the Lions/Rotary Clubs in the US calling for higher taxes on a similar demographic. (tho they don't seem to say anything about corporate taxes)

A number of billionaires have agreed to the concept of giving away much of their wealth, tho probably far more have not.

The Giving Pledge - Wikipedia

en.wikipedia.org

 

[musicisgood]

It might help if they quit sending money overseas to build up other economies first as the president Trump would have said during his first administration is make your country first.

 

[thomas]

The old Robin Hood "rob the rich" and give to the poor economy plan never seems to work perfectly in many cases.

Sadly, the opposite seems to work better than ever.

 

[Lothor]

Although I'm in favour of taxing those most able to pay taxes, I feel a certain amount of frustration with all these articles on taxation.

Japan's problem is that its government spends too much on things with little social value. All people who have lived here have seen the concreted-up river banks and coastlines and the inexplicable roads to nowhere being built in a country with a declining population. Yet they continue year after year, sucking the lifeblood from the economy. The Japanese government needs to bring in the auditors to do a thorough examination of what all the money is being spent on and then cut the wasteful spending.

 

[thomas]

With the rise of the opposition parties and the LDP's waning clout over rural strongholds, we might see fewer white elephant kickback projects serving the concrete mafia and a slow shift towards social spending: kindergartens, health care, pensions, and general welfare.

 

[johnnyG]

the concrete mafia

A friend of ours who drinks a fair amount of wine with cheese, complains about the cheese mafia. Some cheese prices (per 100g) are on par with top class beef.

 

[thomas]

Only the concrete mafia is much cheesier.