Honorable Abe Considers Japanese Stimulus Plan Over Tax Hike
Honorable Abe Considers Japanese Stimulus Plan Over Tax Hike (Reuters)
Japanese Prime Minister Shinzo Abe is mulling over a $50-billion stimulus plan for Japan to help offset the impact of a national sales tax increase. The proposed 60 percent tax increase (from 5 to 8 percent), is designed to rein in government debt. Yet advisors are now telling the prime minister that he should either consider reducing that increase or delaying it, to keep Japan’s fledgling recovery on track. It’s Abe’s hope that by introducing a stimulus package, he can simultaneously help balance his country’s budget and shake off the country’s economic malaise . Investors in the Japanese market hope that a stimulus plan has the same impact it has had in the United States and helps to boost the economy.