The market reacted immediately to the birth of new President Shigeru Ishiba… Behind the scenes, there are concerns that the Ministry of Finance is planning to raise the consumption tax.

On September 27, the LDP presidential election was held, and Ishiba was elected as the new LDP president, defeating Takaichi in a decisive vote. This was the first victory in five attempts to win the presidential election, and he is scheduled to be elected prime minister at the extraordinary Diet session on October 1.

The outcome of the election also had a major impact on the economy.

The Nikkei Stock Average rose as much as 2.32% on Friday, October 27, as the election was won by Mr. Takaichi, who is pro-fiscal policy and called the Bank of Japan’s interest rate hike “stupid. However, when the austerityist Ishiba won after 3:00 p.m., the market reacted immediately, with Nikkei 225 futures falling 4% in a matter of seconds.

Why the “tax hike” policy?

Mr. Ishiba mentioned that he would review the taxation of financial income. Currently, when you sell stocks, you are taxed at a flat rate of 20% regardless of your income, but Mr. Ishiba wants to increase this rate. In essence, even rich people who made a lot of money from stocks and dividends only had to pay 20% tax, which was a small burden. Since the tax is about to be increased, the stock market is likely to cool down and sell off in one fell swoop. In addition, the government is also suggesting partial increases in corporate and income taxes, which is likely to further raise the burden on the public. On the other hand, the attitude of “taking from those who can economically afford it” may be welcomed by the low-income class.

Yoichi Takahashi, a former bureaucrat in the finance ministry, wrote on his YouTube channel on the 24th before the presidential election

If this is Ishiba, the consumption tax will be 15%! The dark days of the Ministry of Finance are back!

The video was released on his You Tube channel. Noda, who served as vice minister of finance during the DPJ’s term in power, was said to have been persuaded by the Ministry of Finance to “set up” two consumption tax hikes. If Noda becomes the leader of the Constitutional Democratic Party of Japan (DPJ) and Ishiba becomes the new president of the DPJ, “the consumption tax will be raised to 15%, and even higher,” he said.

“He has stated categorically that he will aim for a 15% consumption tax, and even higher.

He has stated categorically that “the consumption tax will go up to 15% and even higher.

In fact, since Ishiba became the new president, X

VAT 15
“Taxation of financial income.
Black Monday

Black Monday,” were all trending words that were pessimistic about the “Ishiba administration.

In addition to the Koizumi camp, the former Kishida faction is cooperating.

On the other hand, Mr. Ishiba has always been popular with the public, and some say that he is the long-awaited prime minister. Mr. Takaichi is popular among conservative voters, but because he also visits Yasukuni Shrine, a backlash from China and South Korea is inevitable. Another reason for his defeat may be the fact that 13 so-called “slush fund” lawmakers were nominated for Mr. Takaichi’s seat. In order to win the next lower house election, it is an absolute necessity to get rid of the image of the slush fund issue, in addition to getting rid of factional politics. Many Diet members believed that Takaichi could not win the lower house election, and he was defeated in the final vote. (TV station political reporter)

Will the birth of Prime Minister Ishiba be a tailwind for the LDP? Or will the economy continue to deteriorate due to austerity measures and Japan will once again be in recession? ……