In the News
A Model Tax Rise? - Japan Lifts Sales Taxes
A lovely look here at the impact of an indirect sales tax on an economy. The Japanese government have raised sales tax from 8% to 10% and some are worried that it will have adverse effects upon growth.
However, I'm intrigued by the fact that there's also been an attempt to offset the tax increase by offering a rebate for electronic payments at smaller retailers.
That and the fact that there's little tax on food, and that any increase in tax revenues have already been earmarked for pre-school education and to pay down some of the country's debt make this a more interesting example of the reasons why governments levy taxes at all and what they hope to achieve by them.