the first topic for fall semester, 2013

1. October 30th ,2013

2. 
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Consumption tax increase
The tax system of Japan
What’s consumption tax
The reason why raising consumption tax
The affect of consumption tax increase
DQ

3. Map

4. 
October 1st , 2013,
the Prime Minister Shinzo Abe decided to
raise consumption tax from 5% to 8%
from April 1, 2014. And it may be up to
10% from April, 2015.

5. Map

9. Map

10. 
Consumption tax:
One of the indirect taxes, normal tax
→different with the special consumption tax

Consumption tax 5%=
consumption tax 4% + local consumption tax 1%

Consumers→ bear the consumption tax
the corporation →make a declaration & pay

11. 
Only be taxed for the particular goods and services
Ex. Tobacco tax, Gasoline tax, Liquor tax,
Golf course utilization tax
 Type:
①the tax is included in the selling price
→
Ex. Tobacco tax, Gasoline tax, Liquor tax
>>Double taxation
The selling Price = manufacturing cost + Specific tax
General Consumption Tax =the selling Price * tax rate (%)
②the tax is included in the price
→
Ex. Bathing tax, Golf course utilization tax
>> Specific consumption tax =the selling Price * tax rate (%)

17. Map

18. ▪ "The part of tax increase will be the financial
resources of the social security.”
-Tamura Norihisa,
Minister of Health, Labour and Welfare

19. ▪ The tax revenue for the social security is too small.
-consumption tax ：
①stable and don't be influenced by the economy
②there are mutual checks in the deal and difficult
to tax evasion
③can protect people's privacy because it doesn't
connect with the income
*If raise the corporation tax, the domestic employment will
decrease.
*In Europe, consumption tax is the financial resource of the
social security.

20. ▪
“ Japanese economy will not be impaired
greatly by raising the tax by 2-step.”
- Kuroda,
the president of Bank of Japan
▪
By trial calculation of the Bank of Japan:
The real economic growth rate：
2013 -2.8%
2014 -1.3%
2015 -1.5%
0.3%↑
0.7%↓
↑

21. 
The merit:
①the social service will be better.
②Everyone must to pay the tax, so there are little
complaints
③Can be a measure of tax evasion.
④Because the consumption tax revenue is stable,
good to make the social service better.

The demerit:
①Economy deteriorates.
②The gap will be expand because of the
increase of the tax burden to the low income
people.
③there are maybe adverse effects on small
business.

22. The results of poll & survey
*poll:

*survey:
①Do you think 8% consumption tax is high? (person)
Yes: 1 (33%)
No：2 (67%)
②How much of consumption tax is high do you
think ? （like I think 20% tax is high)
1. 6%-7% (1)
2. 15% (1)
3.other opinion: "...As long as the revenue is used well, and as
long as the gov't budget is transparent, raising it is okay..."

23. 1. Do you think 8% consumption tax is high?
 2. Which way do you want the government
to use the tax most?
 3. Can you think of some other ways to
solve the problem of lacking of the funds
for social security ?


24. 
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Abe says Japan will raise sales tax in April as planned ,October 1, 2013, Mainichi Japan
http://mainichi.jp/english/english/newsselect/news/20131001p2g00m0dm038000c.html (access
at October 2nd, 2013)
Ministry of Finance Japan
http://www.nta.go.jp/shiraberu/ippanjoho/pamph/shohi/aramashi/pdf/002.pdf
(access at Oct. 8, 2013)
http://www.mof.go.jp/tax_policy/summary/condition/001.htm (access Oct. 7, 2013)
http://www.mof.go.jp/tax_policy/summary/consumption/122.htm (access Oct.13, 2013)
http://www.mof.go.jp/tax_policy/summary/consumption/102.htm (access at Oct. 25th, 2013)
http://www.mof.go.jp/english/budget/budget/fy2013/01.pdf (Oct. 25th, 2013 access)
"Consumption tax increase, without sacrificing economy," the president of Bank of Japan,
Kuroda emphasizes in a lecture ,July 29th,2013, MSN news
http://sankei.jp.msn.com/economy/news/130729/fnc13072920590013-n1.htm (access at Oct.
21th, 2013)
http://www.cmc.ne.jp/account/daily/backnumber/20101012.pdf (access Oct.11, 2013)
The trial calculation with the consumption tax increase by Bank of Japan, the growth of 2014
will be push down 0.7%, July 31th,2013
http://sankei.jp.msn.com/economy/news/130731/fnc13073109490007-n1.htm(access at
access at Oct. 21th, 2013)
the merit and the demerit of the consumption tax increase, Naver
http://matome.naver.jp/odai/2131008920700185701(Oct. 21th, 2013 access)
Tamura,Consumption tax increase is “the necessary choose”,July 13th,2013, MSN news
http://sankei.jp.msn.com/life/news/130730/trd13073021260015-n1.htm (access at Oct. 21th,
2013)
"Why must raise the consumption tax", Kazuki Fujisawa, June 17th,2010,
http://agora-web.jp/archives/1035596.html (access at Oct. 21th, 2013)
France is the first that introduced the normal consumption tax
http://www.bunsan0020.info/ao5017/entry2.html (access at Oct. 26th, 2013)