In Japan, our life will have changed from 1st April. Prime minister Abe said that he will raise consumption tax 5% to 8%. And in 2015 it will raise on 10%. Therefore, prices will increase, and we need to spend money more than now.So, now (until 3.31.2014), many supermarket have sale event, so that help us can buy things more profitable.
So, what kind of thing relate to our life. First thing is food. We can buy food at supermarket, convenience store, and 100 yen shop. Normally, in 100 yen shop, goods are always sell in105 yen. 5 yen is consumption. But from April, it will increase 3 yen, so it will be 108 yen. It just increase 3 yen, and it looks like small increase, but if you buy one bread in 100 yen shop every day, it will increase 1095 yen in a year. Also in supermarket, people always buy food in there so, if people buy 1000 yen lunch in supermarket every day, they must pay 29200 for the tax in a year. It is expansive, and it will change our family budget.
Next thing is transportation. People mainly use train to go to school or work place. Train company, JR said from April, fare of train will increase. Obviesly we use train every day, so absolutely, our high expenditure will not be escape. Trasportation is not just train. Also it relate to cab (taxi) or bus. Espasially in Japan, fare of cab is so expensive (1km=760 yen). So to compare with train, definetly over 80 percent people are using train. So when tax increase, more and more people will use train. So that invite cab's company's economy depression, and in the worse case, some cab companies will bankrupt, according to some economistics.
Last one is income of worker. Even if we pay more money, worker's income is same as now. Because tax is not for company, it is for government. So even price of goods raised, it is because tax increase. So worker's income donsen't increase. On the contrary, it will decrease. Because, if tax increase, people don't want to buy so much, so customer will decrease. So that will invite depression of company, and worker can't get income than now.
Abe said tax increase will help economy better, but some critic have opposite opinion between government. This is not just problem between government and critic or economistics though. It relates to our life, I think, seriously, we (citizen) need to think about it. But to say the truth, citizen dissapointe to government now. Because there are lot of bad incident that relate to government. So first government need to do things properly, and we need to discussion with government someday.
5 key words
Consumption tax - It is a tax that consumer must to pay.
Consumption is the act of buying or using money.
Expenditure - The act of spending or using money.
Fare - The money that we need to pay when we are going to use transportation.
Bankrupt - When the company stop to do their work because of no money.
Contrary - Opposite from something.
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