Debate is heating up in Tokyo about the advisability of increasing Japan’s consumption tax. Which should come first – economic growth or fiscal reconstruction? The prime minister must decide in a matter of weeks.
I’m sitting in a Roppongi bar discussing the subject with a knowledgeable Japanese bureaucrat.
“It’s essential to raise taxes,” he says, cradling a well-aged Islay malt. “If we don’t, investors will lose confidence and our bond market will collapse.”
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