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Naoki Tanaka on fiscal reform

January 7, 2007
By Ken Worsley


Forbes has published an English translation of an interview done by the Nihon Keizai Shimbun with Naoki Tanaka, president of a think tank known as 21st Century Public Policy Institute. One of Tanaka’s points is that single-year budgets should be balanced by 2015, which is later than the government’s previously stated goal of 2011. When asked about the possibility of consumption taxes rising, Tanaka had this to say:

This is an issue among the lineup of choices available to voters. There are various combinations of cutting expenditures and raising taxes.

The response seems a tad disingenuous, since voters really won’t be deciding anything. It seems as though it will happen, and the diet would like to put it off until after the upper house elections in July.

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Comments

4 Responses to “Naoki Tanaka on fiscal reform”

  1. Garrett on January 9th, 2007 8:12 pm

    Wow. That was a non-answer. As you pointed out, Ken, not only will voters not really be deciding, to answer such a question with “There are various combinations. . .” is just a waste of time.

  2. Ken Worsley on January 10th, 2007 8:09 am

    Right - what various combinations? Does he actually think there are a bunch of options on the table? It’s too bad the reporters are just asleep at the wheel.

  3. Adamu on January 13th, 2007 1:18 am

    21ppi is a Keidanren-affiliated think tank, and Naoki Tanaka is a major proponent and author of the Keidanren reform agenda as well as a member of the Koizumi brain trust. He’s currently the chairman of the postal privatization commission that is supposed to make sure the various goals of privatization are realized.

    About consumption taxes: don’t beat up on Tanaka. You know as well as anyone that the consumption tax hike is as inevitable as it is unpopular, and it’s been kicked down the field too many times to remember. What’s funny is that the DPJ manifesto actually speficies an increase in the consumption tax which would be used to secure social security finances. Maybe he’s trying to give people a subliminal message not to vote for the DPJ.

    Except for his vagueness on consumption tax, I would recommend that Abe pakuri the entire thing and deliver it as a major policy speech. Tanaka mentions nothing that isn’t already an ongoing government program/policy. Why can’t Abe express himself a little more clearly?

  4. Ken Worsley on January 13th, 2007 1:48 am

    Damn, Adamu, that’s a huge question. And I would agree with you: Abe should be able to find a way to package up the consumption tax increase as policy and sell it as a benefit to the people: it will save your pensions (reality or not).

    I think you’re right that it’s inevitable, but the question is when. I suppose when it would hurt the LDP the least, which would most likely be when it’s not going to be effective enough anymore. We’ll see; it could be from Jan 1 2008, which would make for an interesting shopping season leading up to it - might even help that old consumer spending for a bit, to put some positive spin on it.

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