The economic stimulus package
The Japanese government will soon be offering a $51 billion economic stimulus package to businesses and taxpayers. Here’s some information on what normal people can expect to get out of it:
As part of the deal, 2 trillion yen in all will be handed out to Japanese households in one-off payments by next March. This means a family of four in Japan will receive about 60,000 yen in cash – a move designed to boost domestic spending.
Consumers can also look forward to receiving bigger tax deductions on their home mortgages and an extension of current tax reductions on capital gains and dividends.
For the corporate sector, there are also increased loan guarantees for small and medium-sized firms that comprise the biggest portion of the package in terms of value.
This is aimed at easing the credit squeeze small companies are expected to face as banks continue to cut back on lending.
Mr Aso’s package even takes care of the little details. To boost usage of expressways outside metropolitan areas, tolls are to be reduced to a maximum of 1,000 yen for car owners on holidays.
There will be easily visible drawback, however. Aso has said that the government is considering an sales tax increase three years from now. Be prepared for a future where everything at 100-yen store costs more than 105 yen!
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I wonder if “Japanese households” means all households in Japan, or just those of Japanese citizens?
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I haven’t seen the full details, but I’m guessing that it will go to households that paid taxes.
That was my very question – I’m sure gaijin will find some way to complain about it, however it works!
But, not all households pay tax due to unemployment or whatever. Actually, this is a very good question that someone ought to be chasing down!
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If it’s any indication, we (my foreign wife and foreign self) received the government compensation payment for the birth of our daughter (350,000 yen) and our daughter wasn’t even born in Japan. My wife’s student visa was still valid by the time we moved back, and our daughter was already 16 months old. There was no problem at all.
So it would seem there’s a good possibility this new package would also apply to “residents” of Japan, whether permanent or temporary.
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It mean they hand the money out to everyone they have proper records for, such as National Pension Plan records.
Oh crap…..
And is that 2 US trillion, or 2 British trillion?
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Almost certainly US trillion – even the UK is moving to that now. Probably as 1,000,000,000 is still a more common figure than 1,000,000,000,000 – for the moment. And the Americans have a word for that latter one anyway.
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For the record, the UK government switched to the US definition of billions and trillions in 1974, they just didn’t tell anyone and left us all confused.
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It’s 2 Tricia McMillan.
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Oh No Not Again….
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I wish the American Government gave us all $550.
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They did – this past summer.
Didn’t you get yours?
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The 1000 yen expressway thing is huge. I paid 17,000 yen for a trip from Hiroshima to Tokyo last year (not that I’d ever make that 14 hour journey again).
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I totally agree. In fact I would seriously consider just going somewhere to take advantage of this. But pretty much limited to day trips….
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hmm
and where are they getting the money from?
Out of thin air like some other majors?
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Stimuluis packages are really bad ideas
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You’ve taught us a lot! Thank you!
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