The LDP is seeking to suspend the consumption tax on food and beverages for two years. Such a tax pause would do little to stimulate the economy or bolster living standards. Other drawbacks include a lengthy implementation lag, funding constraints and a risk of undermining confidence in social security programs’ fiscal sustainability. Refundable tax credits, a more potent approach to mitigating inflation, should be prioritized over a consumption tax pause.

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  • Portraits ofTakahide Kiuchi
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    Takahide Kiuchi
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    Executive Researcher
    Financial Technology Solution Division
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