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                  Japan Set to Roll Out Controversial Tax Hike

   Japanese Prime Minister Shinzo Abe is expected Tuesday to announce a
   long-anticipated sales tax hike to help reduce the country`s massive
   public debt.
   The plan to raise the consumption tax from 5 percent to 8 percent by
   April comes after a quarterly survey showed business confidence rose to
   a five-year high.
   A positive result from the Bank of Japan`s "tankan" survey was
   considered critical for Mr. Abe to end months of speculation and go
   ahead with the sales tax hike.
   Some worry the move will damage fragile growth in Japan, where the
   economy has grown for three straight quarters and the stock market has
   surged about 40 percent since the start of the year.
   To offset those concerns, Mr. Abe is expected to roll out a stimulus
   package that includes tax breaks for low-income earners and corporate
   incentives to boost wages.
   Mr. Abe is trying to revitalize an economy that has been stagnant for
   decades and reduce Japan`s government debt, which is more than twice
   the size of its economy.
   His strategy, known as Abenomics, has so far relied on boosting public
   spending in order to spur growth and aggressive monetary easing, or
   increasing the money supply, to help fight deflation.
   But the third so-called "arrow" of Mr. Abe`s plan involves structural
   reforms to Japan`s economy that could prove to be painful and more
   politically difficult.
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   [1]http://www.voanews.com/content/japan-set-to-roll-out-controversial-t
   ax-hike/1760343.html

References

   1. http://www.voanews.com/content/japan-set-to-roll-out-controversial-tax-hike/1760343.html