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To: xzins
I remember when the Japanese sales tax went from 3% to 5%.

Not only was there a burst of buying just before it went into effect, there was an appreciable slow-down in buying after. It was widely held that the increase was a strong factor in the recession worsening for a period after it went up. (For instance, this story recounts it this way: "Japan’s sales tax was introduced in 1989 and raised to 5 percent in 1997. The increase pushed the nation into a 20-month recession and caused then Prime Minister Ryutaro Hashimoto’s Liberal Democratic Party to lose a majority in the lower house of parliament for the first time." That accords pretty much with my memory of the event.)

If going from 3% to 5% caused that much pain, I can only imagine what going from 5% to 15% would.

27 posted on 07/15/2010 4:20:35 AM PDT by snowsislander
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To: snowsislander
If going from 3% to 5% caused that much pain, I can only imagine what going from 5% to 15% would.

The people that believe the sales tax going from 5% to 15% is a good idea are the same people that believe the trace gas CO2 going from 0.035% to 0.045% of the atmosphere will cause runaway global warming and destroy Earth.

33 posted on 07/15/2010 8:14:55 AM PDT by Reeses (Sowcialist: a voter bought with food stamps)
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