Friday, June 17, 2011

Japan wants to raise taxes to pay for reconstruction

The ruling Democratic Party of Japan (DPJ) will try to raise the income tax and companies to repay loans for reconstruction. The rise would be ten percent for both taxes, which in one year would win between one and two trillion yen.

The party will not attempt to raise the consumption tax for the same purpose, but increase them meditate to address rising social security spending. It is estimated that Japan will have to invest about 211,000 million euros in reconstruction work, the major task of this nature since the end of the Second World War.

The most affected area is the northeast coast of the island of Honshu, as was achieved by the tsunami, and closest to the epicenter. The next month should succeed the second supplementary budget for reconstruction.

Nipponese media estimate that this time the government could spend half that in May. For his part, Minister of Finance, Yoshihiko Noda, reveals that the Government will avoid issuing more government bonds to fund the programs.

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