With the baby boomers due to retire over the next five years, the consumption tax (now 5 percent) needs to be raised to 10 percent immediately to provide the required benefits and support that retirees will need. In raising the consumption tax, however, the government should exempt from taxation the basic necessities of life such as rice, fruit and vegetables, and toiletries. It should also reduce the income tax.
In addition, the government must take steps to reduce expenditures by eliminating corruption, unnecessary funding of projects in country towns, and tariffs on imports that, while protecting local industries, prevent the majority of taxpayers from being able to buy goods at cheaper prices. The government is elected to distribute tax income equitably and to serve all people -- not just its favored few supporters.
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