A new way of doing money

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The other leading proposal, a consumption tax hike, is the worst possible solution. It would leave the economy in a worse state, as consumer activity is already stagnant and the deflationary recession would not be overcome.


It would be fine if tax revenues increased by raising taxes. However, in the past, when the consumption tax was raised from 3% to 5% in 1997, tax revenues later fell, and general account tax revenues fell from about 54 trillion yen in fiscal 1997 to about 37 trillion yen in fiscal 2009. As the deflationary economy progressed, due to the power relationship between transactions with large corporations, small and medium-sized enterprises that were burdened with tax burdens without being able to remove background image pass on the consumption tax amount to product prices went bankrupt one after another, which led to a sharp increase in unpaid consumption tax. Regardless, the damage caused by the earthquake to the Japanese economy is enormous, so for the time being, ordinary households must be prepared for it to become even tougher than before. Basically, the first priority is to be on the defensive. We don't need to look at TEPCO shares to see that the current market, both stocks and foreign exchange, are abnormally speculative, and are not something that amateurs can handle. The key here is to increase the weight of savings rather than investment.

If you have the means, consider donating to disaster-stricken areas. A recommended method is "Hometown Tax Donation." By making a donation to a specific local government instead of paying taxes, and filing your tax return with the receipt, you can receive a tax deduction, which results in lower income and resident taxes. You can freely choose the local government to which you donate, not just your hometown. There are certain restrictions and limitations on use, and the effect of the deduction also varies depending on household income and family structure. For example, if a salaried family with an annual income of 7 million yen, a married couple with two children, and income and resident tax rates of 10% donates 40,000 yen, they will be deducted from income tax and resident tax by about 35,000 yen, and their actual self-payment will be about 5,000 yen. In other words, a donation of 5,000 yen can have the effect of 40,000 yen.