To add extra energy to a reviving economy, the government of Japanese prime minister Fumio Kishida will offer about $35 billion in temporary income and residential tax cuts and cash gifts to low-income households.
The rest of the money, funded by a supplementary budget through next March, will be split among subsidies for gasoline, diesel, and electricity bills and subsidies for businesses to raise wages and strengthen their supply chains.
The plan was attacked even before Kishida’s cabinet approved it.
Sixty-five percent of respondents in a survey by Nikkei disapproved of cutting income taxes. Kishida’s approval sank to 33 percent, his lowest since taking office in October 2021.
Stimulating an already-positive economy amid stubborn inflation is risky, opponents pointed out.
Previous stimulus gifts to households have had little impact as Japanese households tend to save any extra cash instead of boosting spending, the Financial Times noted.
The temporary tax cuts and cash gifts will add just 0.2 percent to the country’s annual GDP, according to an analysis by the Nomura Research Institute.
The tax cuts will take effect next June. By then, the Bank of Japan is expected to have ended its policy of negative interest rates, a shift that some analysts expect in April, the FT said.
TRENDPOST: What Japan is doing and has done, perfectly illustrates that it is nothing more than a rigged game played out by the Bankster bandits and their government hit squad. And, none of what Japan is doing will make any difference if WWIII continues to escalate, and for example, China gets into the war game by attacking Taiwan.
Also, we forecast that with Ukraine’s counteroffensive a complete failure, to get back in the news and to get more military support, Kyiv will attack a nuclear plant and blame it on Russia and/or launch a massive attack of some type that will hit in the heart of Russia.
Thus, what the Banksters and governments are doing to artificially prop up economies and equites will make no difference as economies and equity markets sharply decline.