For example, we can choose how much to collect via a general income tax, a payroll tax, a consumption tax (such as a sales or value added tax), and so on.

Many of us are hostile to the consumption tax.

The consumption tax is now 5 percent in Japan.

Half of tax revenue is collected with a value added tax, which is essentially a tax on consumption.

There are many arguments for raising Japan s consumption tax rate.

A 5 consumption tax is levied on most goods and services in Japan.

In Japan, an excessively front loaded consumption tax increase killed the recovery achieved this year.

Tax hikes lower consumption and raise revenue in the medium term a 10 higher tax means about 7 higher revenue over the medium term.

A carbon tax has also been proposed as a method to reduce consumption of fossil fuels.

The timing of the April 2014 consumption tax hike (from 5 to 8 ) was also unfortunate.

Japan s government has a huge debt burden, and its consumption tax rate is far lower than the value added tax rates that prevail in Europe.

But a consumption tax hike is no panacea, particularly given the government s lack of a growth strategy.

And Japan seems to be intent on inflicting on itself a second, growth retarding consumption tax increase.

When Kan led the DPJ in opposition, he avoided discussing any raise in the rate of consumption tax.

To strengthen purchasing power and to stimulate consumption, tax cuts on low and medium income households are essential.

While gains from fundamental tax reform say, replacing the current tax system with a broad based consumption tax are large, on the order of 0.5 1 percentage point per year of economic growth for a decade, corporate tax reform would also boost growth.

And yet, while the consumption tax increase is not ideally timed, I am not entirely pessimistic about its impact.

(Another case with similar consequences was Japan s value added tax increase in 1997, which precipitated a collapse of consumption).

By imposing a stiff tax on energy consumption, Europeans would reduce both consumption of energy and its price in world markets, in turn cutting the flow of funds to Russia and Iran.

On the revenue side, as many as 63 developing countries are considering raising consumption taxes, such as the value added tax.

One possibility is an increase in the consumption tax, which currently stands at 5 low in comparison with other industrialized countries.

Japan s new government, led by Prime Minister Naoto Kan, started discussing a consumption tax hike to offset the growth in spending.

During the new government's first three months, trends in industrial production, services, construction, consumption and, worst of all, tax collection reversed.

Stimulus spending aims to use higher government outlays or tax incentives to offset the decline in household consumption and business investment.

Postponing the second consumption tax increase seems like a good compromise between pushing Abenomics to escape velocity and maintaining long run credibility.

With Hatoyama continuing to oppose an increase in consumption tax in the next four years, the issue will be a test of the government s fundamental seriousness. In last year s general election, the DPJ offered countless rosy promises.

If consumers expect that their taxes will rise in the future, they may decide to save the tax cut rather than boost consumption.

Low hanging fruit Consumption.

Only consumption is lagging.

Nonetheless, with Japan s economy just beginning to recover from more than 15 years of stagnation, such a steep consumption tax hike is not advisable.

He exempted voluntary overtime pay from employment tax and shifted some of the burden of labor taxation onto consumption (via a hike in VAT).

In Japan, the fiscal stimulus from post earthquake reconstruction will be phased out, while a new consumption tax will be phased in by 2014.

Monetary subsidies to consumption are also often granted in developed countries for a variety of purposes, not least of which is fighting tax evasion.

Fiscal sustainability requires an eventual rise in the consumption tax, and of course Japan should not wait until international investors start doubting its willpower.

A general rise in global demand will simply spill over into higher commodity prices, with little helpful effect on consumption.

The proceeds can be divided equally between workers, local authorities, a general tax cut and the central government.

The DPJ suffered a bitter defeat in this summer s upper house election, after Kan abruptly proposed a significant increase in the highly unpopular consumption tax.

Tax reform.

Tax reform

It started on tax reform a 'flat' income tax, a single regressive social tax, a ban on the turnover tax, etc.

All for One Tax and One Tax for All?

as a treatment against consumption.

Catalyzing Consumption and Balancing Growth

Reduce consumption of edible oil

Again, a commodity for consumption.