Japan's Newest Nanny State Laws are a Hidden Tax

The Japanese government keeps enacting new laws to "protect the public" but they are actually new taxes to help municipal governments cover their fast growing red-ink. Here is another story about a new law that was just enacted about two months ago..


In yesterday's news report, Japan took a huge jump towards the victor in the title of Nanny State of 2011 by ticketing a cyclist for viewing photos on a cell phone! She wasn't talking on a cell phone, she was viewing photos!!!???... This is really getting ridiculous. But the devil is even worse in the details. Read on!

Japan Today reports

KANAGAWA —

Police have charged a teenager for using a cell phone while cycling, in the first such case of its kind in Japan, Nikkan Gendai reported on Wednesday.

Around 9:30 p.m. last Sunday, a patrolman in Hiratsuka, Kanagawa Prefecture, cited a 15-year-old female high school student for a traffic offense. The girl had been riding her bicycle while viewing images on a cell phone and repeatedly disregarded warnings to desist viewing the phone.

The cop was yelling at this girl to stop looking at her cell phone? Hell yes, she'd ignore the cop. Who wouldn't? I'd think he was nuts.

"Don't look at me! Don't you F*cking look at me!"

The incident marked the first time for Kanagawa police to invoke the revised traffic ordinance, aimed at discouraging so-called “nagara unten” by cyclists who talk on cell phones or listen to music players while in motion. It went into effect on May 1.

“She apparently thought cyclists were not subject to traffic regulations,” the source was quoted as saying, adding that violators may be fined up to 50,000 yen.

Catch that part: "...listen to music players while in motion...." This means drivers of cars, bikes, whatever. Next obvious step is to make it a fine to wear headphones while jogging or walking on crowded public sidewalks. But wait a minute!!! What law did this girl violate? She wasn't listening to music and she wasn't talking on a cell phone. She was allegedly looking at photos!!! 


Any competent lawyer should be able to throw this crap out in a second... But it won't go to that. This girl will pay the fine and the cop will go on his merry way interpreting the law anyway he sees fit. Is this arbitrary or what?


And, get serious, ¥50,000 yen (about $600 USD) for looking at a cellphone or listening to an ipod while driving or riding a bike? Really? This is "protecting the public"? Doubtful. 


This is beginning to sound a lot like the stupid arbitrary laws in the USA. Like the new law that, if enacted, will make it illegal to upload a song to Youtube that has you lip-syncing to a track sung by a famous artist... That would include your eight-year-old girl who does a great Lady Gaga impression too. 

Still, Japan only fines people for dumb laws. The penalty for uploading a lip sync video to Youtube in the USA would be a maximum five years in prison. Japan may be f'ed up with these idiotic laws too, but we're still way behind - and a much freer nation - than the USA is.

But being a freer nation than the USA is not much to brag about these days. This cell phone while cycling law is ridiculous. 

These kinds of stupid laws are supposedly enacted by the government to "protect" the public but they are defacto another tax and a new way for the government to collect monies from us.

It is the same with seat belt laws, motorcycle helmet laws, smoking laws, and a whole litany of other ridiculous laws that the government creates ostensibly to protect us (From who? ourselves, of course).

In the case of seat belt laws or helmet laws, it should be obvious to anyone who is still awake that we don't need these types of laws to "protect us" as there is such a thing as "insurance" in case something happens to us... And if some guy wants to drive his car without a seat belt, is he hurting you or me? Why are we being taxed to stop a guy like that? It's absurd. 

Everyone knows that not waring a seat belt or a helmet might be dangerous. Everyone knows that using a cell phone while riding a bike might be risky, but - with or without these laws - people will still do it. And why not? It is their life. Putting a fine on this girl, for example, certainly will not stop her from riding her bike and using her cellphone, she'll just be more careful to make sure the gestapo doesn't see her doing it next time. 

"Papers please!"

If we really want to prevent accidents, then let's take this type of nanny state mentality to its logical conclusion and outlaw all behavior that is even a tiny bit risky as that way we can alleviate all accidents and abolish accident, car, boat and fire insurance forever.

Of course, that is an impossibility.... But it is an excellent way to raise revenues!

People who do not see the absurdity of these taxes disguised as laws to protect society shouldn't be surprised when the new taxes come in on other ridiculous stuff, like, say, using a headphone or iPod like device in a public place.

Say, great idea! In order to "protect" us the government institutes a new tax on little white earbud headphones and uses the money for research to prevent hearing loss!

Laugh now, if you will, but you "heard" it here first. 

Tax and Spend. Tax and Spend. Tax and Spend. Lather, rinse, repeat.

While driving along the road in front of Waikiki beach, I saw a building that said, "Department of Homeland Security" right next to the harbor. I laughed. Prime location on the beachfront and the federal government has a brand new building for the Department of Homeland Security, in Waikiki no less. Isn't that ironic?

Jack Lord would have been proud.

"Book 'em Dan-o!"

Don't forget that this is the same federal government that was in charge of security when the Twin Towers were attacked on Sept. 11, 2011. Most people who blow their jobs get fired. Not these guys. They get nice offices in Waikiki. 

Funny, you know, if you were the fire chief of some hick town and screwed up  your duties on that day and a bunch of buildings burned down, you'd be fired or would certainly lose your job. Not the government though. They increase our taxes and expand their incompetent services. That's the way the government operates, you know. Their answer to every problem is to tax and expand. 

That's how it works, you see. 

People who have been paying attention will already know that golden rule of politics. And that rule is that no matter what occurs the government response will always be an expansion of that government and that will mean higher taxes for you and me no matter how you slice it.  

So bend over and take it.

On that note, there’s a couple of news stories about Japan that caught my “WTF!?” radar yesterday. I thought I’d write about them today. See if you can catch the irony of the situation.

The clowns in control of the Japanese government claim that they need to increase the current Sales Tax rate of 5% up to 10% in order to cover shortfalls in tax revenues and a burgeoning social insurance liability. They also are using the excuse of the March 11 earthquake, tsunami and nuclear accident at Fukushima as a ruse to fool the public that this tax increase is needed and is for the public good.

If it is for the public good, well then, they are not at fault for poor management, you know. Public good and all... But hey, weren't they just claiming that they needed to raise taxes for a different reason before the March 11 earthquake? Why, yes, they were! Then it was out of control spending.

But not now! No! Now is because we are all Japanese people and we must stick together to raise taxes to help the people up north. 

By claiming that monies will be used for reconstruction of the northern Japan region of Tohoku, the government can act like they have no choice but to  increase taxes for the betterment of the public. They’ll claim that they are being “forced” into raising taxes and it can’t be helped due to circumstances outside of their control.

Never mind the fact that Japan’s public debt, by this very same government and preceding administrations pushed the debt to past 200% of GDP long before the March 11 disaster struck. 

Regular readers of this blog will know what I think about this sort of political bandwagon nonsense. 

Here are two articles that I found that I’d like to share with you that shows just what kind of shenanigans go on in the halls of power at Nagatacho.

The first from the Daily Yomiuri newspaper about how the government of Naoto Kan, in spite of being resoundingly defeated in the last election due to an insistence on increasing Sales Tax, is going to push it through no matter what. 

Public opinion and a frail economy be damned. Great timing, eh? No election coming up and all. I wonder what the angle is for the criminals of the LDP? The Daily Yomiuri newspaper:

The government and the Democratic Party of Japan agreed on tax reform plans this week, and plans to submit related bills during the Diet's ordinary session next year. 

Woah! Watch out! "Tax reform" is a code-word for "Tax increase." 

It will need to clearly stipulate in those bills when the consumption tax should be raised and by how much.

Translation: One party agrees to tax hikes and "budget cuts" as long as their pork barrel projects remain intact.

However, there are piles of tasks to be completed before that can happen, such as deciding standards by which to assess the national economy's ability to withstand the tax hike, and determining how tax revenue should be shared between the central and local governments.

Yes. The pirates must always decide how to divvy up the loot.

Thus, the government will have to overcome some high hurdles to realize the agreed plan to raise the consumption tax rate to 10 percent "by the middle of the 2010s."

Hopefully those hurdles will be so high that they kill themslves on the way back down. Faithful readers of this blog might remember my post entitled: Japan's Government Headed for Ouster? Good. The Sooner, the Better. Where I pointed out that the best government that we could possibly hope for is one in constant deadlock because, if they are in deadlock, they can't pass any news taxes. See? I was right. That slimeball Kan snookered his way back into power and now they're talking about raising taxes.

Am I genius or what? No. Not genius. All governments are the same sneaky lowlife. I am merely an astute observer at best.

The bad news continues:

The government's plan is to raise the consumption tax rate in two stages. At first, the rate will likely be bumped to 7 percent or 8 percent in autumn 2013 or later, and then to 10 percent by the end of fiscal 2016.

Great! This means we still have a chance to boot these clowns before they do anymore damage.

It is feared that a single, all-at-once increase to 10 percent might hurt the nation's real economy.

Gee. Do you really think so? It's been proven that an increase in taxes coordinates with a corresponding decrease in tax revenues. Haven't these idiot politicians never heard of the Laffer Curve? No? OK. From Wikipedia:

One potential result of the Laffer curve is that increasing tax rates beyond a certain point will become counterproductive for raising further tax revenue because of diminishing returns. 

Gee wasn't the opposition LDP just claiming that they were against Naoto Kan's plans for reconstruction and didn't they just stand in the last election firmly against any increase in the Sales Tax rate? The Economist reports:

"...opposition parties have threatened to block implementation of the spring budget for the next fiscal year. Without big concessions..."

"Without big concessions!?" Gee, do you think that means that you grease our wheels and we grease yours?... Nah!

You know what is going on here, folks, is that the LDP wonks actually want to increase taxes too but they see a golden opportunity to increase those taxes while at the same time making Naoto Kan and the dimwitted Democratic Party of Japan (DPJ) take the blame for it.

See? The LDP gets their cake and eats it too and then win the next election because they can claim that they were against any tax hikes. Those sneaky genius bastards! Gotta hand it to them though… They didn't get to run this country for iffy years by not knowing how to play a very hardball game of poker.

Kan and those clowns are out of their league. The LDP is going to secretly get their tax increase (they were the ones who first put a Sales Tax into place) and they are going to blame the DPJ and return to power.

The next article would be a real head-scratcher except if you remember the golden rule: that no matter what occurs the government response will always be an expansion of that government and that will mean higher taxes no matter how you slice it.

The Japan Times reports that in 2010 Japanese government revenues actually jumped 7.1%!

Tax revenues for fiscal 2010 rose 7.1 percent from the previous year to ¥41.49 trillion, exceeding the earlier forecast of ¥39.64 trillion, thanks to improving corporate earnings, the Finance Ministry said Friday.

Did you do a double-take on that one? I sure did. WTF? The government coiffures  actually increased by more than 7% last year and these clowns still want to raise our taxes?!

Just to prove to you how much of a scam this all is and how completely and totally fiscally irresponsible these people are, here's another article from Feb. 24th, 2011, two weeks before the Tohoku earthquake and tsunami, that gives another totally different reason for raising our taxes: Government debt to GDP. From Bloomberg:

Moody's said that it cut its outlook on the credit rating on Japan because of “heightened concern that economic and fiscal policies may not prove strong enough to achieve the government's deficit reduction target”.

Also they said the government's policies would probably not be able to “contain the inexorable rise in debt, which already is well above levels in other advanced economies”.

Analysts said that the move by Moody's was widely expected after S&P's decision to cut its rating. However, they added that while it may have a limited impact on the bond and currency markets, it could have broader political implications.

“Politicians or the finance ministry could use this as a reason to push for fiscal reform, which could include a sales tax hike,” said Satoru Ogasawara, an economist at Credit Suisse. 

Uh oh, there's that "reform" word popping up again.

It looks like these people have their hearts dead-set on raising our taxes one way or another. It would never do to be responsible to do something like, say, cut spending. Oh no! Can't do that.

Twenty years of this sort of out of control spending and tax increases have landed this nation right where it is today: With a faltering economy and massive debt and our credit rating slashed.

At this rate, all we can realistically expect is twenty more years of the same.... That is if we don't go bankrupt before then.

A Reaction to the Royal Weddings & Royal Condoms from Tokyo

A good friend, Marc Abela, commented about my posting of yesterday, Golden Week, the News and Nuclear Holocaust... Just a Regular Day Like any Other in Tokyo. Marc writes:


Hi Mike,
You're not covering the "royal wedding"...? :)


Thanks Marc. Nope. For your edification, here's three reasons why I do not "cover" important things like the "Royal Wedding." First off, fine publications like Yahoo have already asked the important questions in their online blog. They asked:


Why didn't Prince William watch his bride walk down the aisle? 
Who was that little girl covering her ears and frowning while the newlyweds kissed on the balcony? 


And, finally, Yahoo asked the question that we were all wondering;


Where can I get those gorgeous earrings Kate wore to her wedding? 


Oh, yes! Where can I get those gorgeous earrings Kate wore to her wedding? Last time I inquired at my local Walmart, they had nothing of the sort.


The second reason why I don't write about the Royal Wedding can be summed up in this short video (that was not funded by taxes):

THE HOLY GRAIL - KING ARTHUR

May I quote?


"How'd you become king then?"


"The Lady of the Lake...Her arm clad in the purest shimmering samite...
held aloft Excalibur from the bosom of the water... signifying by Divine Providence...
that I, Arthur, was to carry Excalibur.... That is why I am your king!"


"Listen, Strange women lying in ponds distributing swords is no basis for a system of government. Supreme executive power derives from a mandate from the masses not from some farcical aquatic ceremony...


You can't expect to wield supreme executive power just because some watery tart threw a sword at you."


In a nutshell, that's why I can't even tell you the names of who is getting married and I don't care. 


The third, and final reason, why I don't cover, write about, nor even care about any Royal Wedding is due to pressing matters at home that must be attended to immediately; the weeds in the back garden.

Weeds versus Royal Wedding? Tough to decide which is more exciting.

Toss a can of beer in with pulling weeds and it's an easy call.

When you add up these three factors listed above, then, I'm sure you'll agree, that we all have much more important things to take care of than spending a day on front of the TV watching a wedding ceremony that is heavily funded by the local taxpayers. Why, it's even more boring than watching the local tax-funded funeral of some long dead king. 


I mean, really, why even care about the Royal Wedding? They are just going to wind up getting a tax-funded divorce in a few years anyway.


Don't they always?


BREAKING NEWS! IMPORTANT UPDATE!: With Royal Wedding Condoms, British Taxpayers Won't be the Only Ones Getting Screwed!


Royal wedding memorabilia has reached a new level of 
tastelessness: Crown Jewels Condoms of Distinction 
is selling Prince William and Kate Middleton-themed condoms! 

Instructing randy Brits to “lie back and think of England” 
because “like a royal wedding, intercourse with a loved 
one is an unforgettable occasion,” The condoms are 
sold in royal purple packages with a picture of the 
happy couple on the front. But some folks are not 
amused. “This is completely tasteless and rather 
hurtful,” Ingrid Deward, editor of Majesty magazine, 
told Orange News. 


I wonder if the Royal couple get paid "royalties" on each pack sold?

Idiots in Government Waste Thousands of Dollars Buying Super-Hero Capes

Yesterday, I wrote a blog complaining how the clowns in the government in Japan wanted to raise sales tax - in the middle of some of the worst economic conditions and after the worst natural disaster in Japan's history. It was one of the few blog posts that I had written recently that readers completely agreed with. In Japan's Tax-At-All-Costs Political Class, I wrote:


As usual, when it comes to doing something about the economy, the government cannot admit its errors and try to strip them away. As is the case now, and has always been the case, the government of Japan's answer to financial problems is not to cut spending or to sell poorly valued and foolishly bought US government backed securities (that lose value every day), but the answer is, and always will be to spend and raise taxes.

STEVIE WONDER - YOU HAVEN'T DONE NOTHING

Well, here's a story from the USA that takes the cake. It's about how idiots in government are spending $75,000 in tax monies on a campaign to puts Super-hero capes on the unemployed. Residents of Central Florida can win cash prizes if they follow the unemployment office's Twitter or Facebook account.

Adventures of Unemployed Man? 

What's next? "Horror Stories of Homelessness Man?"

How's that for putting a dent in unemployment? They start a Social Network service and give out cash prizes like a lottery to winners.


How in the world is that going to help unemployment!?


From Raw Story:

The jobs agency plans to distribute the superhero capes to residents taking part in the agency's "Cape-A-Bility Challenge" by trying to vanquish "Dr. Evil Unemployment." 

From the Daily Bail: 

Before you do anything else watch this idiotic video that was financed completely by tax dollars...

• WFC Cape Video

WCF or Workforce Central Florida gets $24 million annually from federal taxpayers and accomplishes virtually nothing based on their own statistics.

Residents of central Florida can win a cape by becoming a Workforce Central Florida fan on Facebook, taking a Facebook quiz, having a photo taken with a foam cutout of Dr. Evil Unemployment, tweeting a job posting, or using LinkedIn to recommend someone using the word "super."

The boss of the unemployment campaign in question defended the campaign, saying it will spread the agency's message. The capes, she said, are a direct tie-in to the larger effort.

"Some people will wear them, and others will ask 'How do I get one?'" she said.

"Everyone," she said, "is a superhero in the fight against unemployment."

This is just one more example - in a long line of millions - trillions - that will never end that show how the government wastes money. Remember, whether it is idiocy like this, doing "something" about the economy or helping the poor or suffering, the government will always waste money and make the situation worse. History proves it.

Then on top of that, they take their cut of the monies for salaries and vacations all the while giving no bid contracts to their friends. I wonder if they had a fair bidding process for the job to manufacture $25,000 worth of Super-Hero capes?

I'll bet you a huge office full of glazed donuts for unemployed workers that they didn't.

"Everyone is a Superhero in the fight against unemployment?" Indeed....

Japan's Insane Tax-At-All-Costs Political Class

This will be my 800th posting on this blog. I think it is fitting that, after all that has happened, as through the short history of this blog, the economy of Japan and most western nations are close to collapse, as Japan's national debt is over 200% of GDP, as the US government has surpassed the legal limit on the debt ceiling for that nation and into de facto bankruptcy, as silver hits a new 31 year high to nearly $44 USD an ounce and gold is knocking at the door of $1500 dollars an ounce, that this 800th blog should be about taxes and the economy.

BEATLES CARTOON - TAXMAN

Once again, the news shows that our rulers never learn their lessons when it comes to taxation and debt. After the disastrous events of the last month starting on March 11th and continuing today, once again, the government of this country shows that their only answer to our financial problems is to raise taxes.

Jiji Press reports:

Tokyo, April 18 (Jiji Press)--Japan is considering raising the consumption tax by 3 percentage points for a limited period of some three years to secure funds to rebuild areas devastated by the March 11 earthquake and tsunami, officials said Monday.

   Japan will be able to secure 7.5 trillion in annual tax revenue by raising the tax rate to 8 pct from 5 pct, government and Democratic Party of Japan officials said.

   The nation is preparing the first supplementary budget for fiscal 2011 with the spending amount of some 4 trillion yen. The budget will be covered without new debt issuance.

   Tokyo is likely to compile more budgets for the current year, as many in the government and the ruling party believe that more than 10 trillion yen should be spent in total on the reconstruction of the disaster-devastated areas.

   To finance the second and later budgets, the government will issue reconstruction bonds. Many think that the revenue from the envisioned tax hike should be used entirely to redeem the reconstruction bonds, the officials said.

It says in the first paragraph, "Japan is considering raising the consumption tax by 3 percentage points for a limited period of some three years..." Sure. Only three years, right? And after that, we're supposed to believe that the Japanese government will have their financial house in such good order and fine shape that they can cut taxes? What planet are these people living on? Has the Japanese government ever cut taxes? How, pray tell, are they supposed to be able to do that when the economy is so bad and, as I mentioned, our public debt has surpassed 200% of GDP?

History also shows us what happens when sales taxes are raised. There will be a correlating drop in sales equal to the percentage of the sales tax; raise taxes by three percent and sales will drop by three percent. And who winds up paying for this kind of sales tax hike? Not the ultra-rich or corporations who have all sorts built-in tax advantages. The rich only have to spend a few percentage points of their income for basic foodstuffs. The average middle class household is spending 15~25% or more just for survival. Hit them with a sales tax increase and you hit them below the belt. 

The good example goes like this: Say, average millionaire wants to buy a new yacht? No problem. It's needed to entertain guest so it is a business and tax write-off. But, say, the single mother with a two kids whose husband has run off and doesn't pay any alimony, is not buying yachts and diamond necklaces, she is scrimping and saving to buy milk, eggs and rice. and the basics she needs to survive.

A 3% hike in her grocery bill hits hard. 

The average household is is also expected to carry the burden of massive public debt created by the government. It is this government who arbitrarily decides to tax one class of poor people to give to another class of poor people (in this case, the average Japanese family gets taxed to pay for the suffering and reconstruction of the poor who suffered in the Tohoku disaster) all the while the government takes a margin for delivering these services and gives no-bid reconstruction contracts to their cronies.

Nikkei 225 at ¥9441 on April 19, 2011

The economy is already in desperate shape. Japan's credit rating has been downgraded in the last year and the Nikkei 225 is wheezing away at under 9,500 (it is at 1/4 the amount it was at the height of the bubble economy) and it has also been reported that 15.7% of Japan's population now live below the poverty level. Think about that. 

And, with all of that, with all of this suffering and misery caused by badly thought out government policies, these people want to raise taxes? They must be completely insane.


Japan owns trillions of dollars in US government bonds that were bought with tax monies taken from the public. The value of these bonds have lost some 40% over these last 10 years due to the rapid decline of the US dollar, yet, even with this, the Japanese government has painted Japan into a corner whereby we cannot unload this debt without causing a quick rise in the yen and hurting Japan's export economy.

Silver & gold price explosion is flashing warning signs about the economy

Gold breaks new record to $1503 the day of the posting of this article

Not only that, at least twice in the last 365 days, Japan (and most recently foreign central banks) has intervened in the dollar x yen rate and flushed billion of yen (billions of US dollars) in foolish attempts (that haven't worked) in order to lower the value of then yen.


The fact of the matter is that, for reconstruction, as Peter Schiff points out, Japan should want a stronger yen as that would make our buying of oil and raw materials as well as other items needed to rebuild the ravaged areas cheaper.


But, no! As usual, when it comes to doing something about the economy, the government cannot admit its errors and try to strip them away. As is the case now, and has always been the case, the government of Japan's answer to financial problems is not to cut spending or to sell poorly valued and foolishly bought US government backed securities (that lose value every day), but the answer is, and always will be to spend and raise taxes.


That is why our economy has been so messed up for this last 20 years and that's why is is so easily predictable that our economy will be messed up for at least the next decade or more as Mish Shedlock so skillfully points out.


The politicians who live on dead and proven failure Keynesian economic policies are leading this country down the road to ruin. It will be soon enough, at this rate, that Japan will be like the Philippines. Throw this situation in with how the youth of this country have no where near the dedicated and hard work ethics of their fathers and grandfathers and you have a chemistry that spells out for a very grim economic future indeed


When we look back at what happened in twenty years from now, we'll not be surprised for a second that Japan will be jokingly referred to as the Northern Philippine archipelago.