Japan doubles its sales tax

Next time you complain about our sales tax in the U.S., read this:

Japan’s lower house voted on June 26th to double the country’s sales tax to 10 percent over three years in a bid to rein in a bulging national debt as an aging population burdens the country’s social security system.

The bill passed easily by a vote of 363-96, with support coming from the two biggest opposition parties. The bill must still pass the less powerful upper house to become law, which is expected.

It calls for raising the sales tax from 5 percent to 8 percent in 2014, and then to 10 percent in 2015.

Some economists warn that the tax increase will weaken consumer demand at a time when wages are stagnant and people are already holding back on spending. Key auto and electronics exporters, meanwhile, have been battered by a strong yen, natural disasters that have disrupted supply chains, and intensifying competition from Asian rivals.

If you plan to visit Japan, I would suggest to do it before 2015...just joking (but it will cost you)!