See here, certainly many people will admire, but dont worry, give all children below junior high school tuition fees, which is undoubtedly a large expenditure, then where does this money come from?
Raising taxes and subsidizing Education
All children, before graduating from junior high school, are free of tuition fees, medical treatment, and the government pays each child more than 1,000 yuan of child wage every month. Where did the money come from? It turned out to be on taxpayers.
Photo Source: Global Times Video Screenshots
According to Japan Economic News, Japans consumption tax rate will rise from 8% to 10% on October 1.
Kyodo news agency said the tax increase is expected to bring about 5.6 trillion yen (about 346.8 billion yuan) of tax revenue. The additional tax will give priority to the increased medical and nursing costs associated with the ageing of the population, the cost of supporting child-rearing, and the expansion of free childcare and free education. It is expected that after tax increases and government borrowings of about 4 trillion yen will be deducted, about 1 trillion yen will be allocated to promote generation-wide social security for health care and long-term care.
According to the Yomiuri Shimbun, Japans social insurance is mainly centered on annuity and medical care. Compared with other countries, Japans social insurance is relatively inadequate in terms of children and family-oriented payments. At present, the new generation-wide social security system promoted by Japan includes free early childhood education, tuition and fee relief in higher education and long-term care personnel protection, etc. It extends the old-age-oriented subsidies to all age groups. Therefore, the Abe government decided to use consumption tax to cover the cost of social security reform.
In addition, Shinzo Abe said that after raising the consumption tax, half of the tax will be used to subsidize the cost of education.
Will tax increases subsidize education work?
According to Xinhua. com, Japans birth rate is low. According to the statistics released by Japans Ministry of Health, Labor and Welfare on the 7th, Japans total fertility rate in 2018 is 1.42, which is lower than that in 2017.
One of the main reasons for this phenomenon is the high proportion of unmarried men and women in Japan, which is closely related to the employment system of enterprises. In addition, young men are so concentrated in the capital Tokyo that some local cities, despite the introduction of childcare assistance policies, are not conducive to raising the birth rate. In addition, the excessive pressure of life is also the reason why Japanese do not want to live.
According to the Economic Reference Daily, Japan released 5.5 trillion yen to support the economy after raising the consumption tax from 5% to 8% in April 2014. But Japans personal consumption is still declining. It took four years for Japan to bring personal spending back to October-December 2013 levels. During the buffer period of two delays in raising the tax rate to 10%, Japan launched a number of measures to maintain the personal consumption of the people.
The survey shows that after the increase of consumption tax, the average disposable monthly income of Japanese households (two workers) will decrease by more than 9,000 yen (about 550 yuan). Moreover, the burden of life of all strata will increase to varying degrees, and the cost of living of the elderly and the poor will be greatly increased.
According to Japans economic news, less than a month before the increase in consumption tax, there has been a phenomenon that consumers rush to buy goods in advance. From the perspective of high-priced goods above hundreds of thousands of yen, sales of long-sleeved kimonos in Takashima House increased by 40% from March to August compared with the same period last year. HASEGAWA, a niche company, has launched promotional activities in more than 100 stores throughout Japan since late August. It is reported that sales in the first week of late August increased by 20% compared with a year ago. Sales of refrigerators and washing machines increased by 30% and 40% year-on-year in August, compared with Bic Camera at home appliance stores. Compared with the new products this summer, the models a year ago, when prices dropped, are particularly popular, said the Bike camera.
Photo Source: Screenshots of Japanese Economic News Report
Repeated tax increases have led to rising taxes in Japan. According to Japan economic news, Japans total tax revenue in 2018 exceeded the 1990 in the bubble economy period (60 trillion and 100 billion yen). Compared with that time, the sense of existence of consumption tax increased. In 1990, the tax rate was 3%, and the tax rate was 4.6 trillion yen. Later, the tax rate increased to nearly four times.
Source: Daily Economic News Responsible Editor: Yang Bin_NF4368