Each week, a random day of the week is selected and separately a random taxpayer ID is selected.
If the person drawn made a credit card purchase exceeding $10 on the day of the week drawn, they win $10,000,000 tax free. If there is no winner, the amount rolls over.
This beautiful plan will cost no more than $520 million annually, peanuts these days.
Demographics in Japan are a huge problem. Although various incentive have been tried, none of them have gone far enough.
I propose a reduction in income taxes for everyone starting a family. The following scale applies.One new child: 50% reduction in income taxes for a period of ten years. Two new children: 100% reduction in income taxes for a period of twenty years. Three new children: Subsidized housing, free healthcare, free schooling, and no income taxes for thirty years.Those with one new child in the last five years get full credit if they add at least one more child in the next five years.
Related: ETF Mutual Fund Fees Race to Zero
Guarantee I absolutely guarantee my plan will end deflation in a jiffy.No one will be in Japanese bonds so no one will be destroyed holding them.All Japan has has to do is print the money to pay for any tax shortfalls. After all, interest is truly owed to itself. Curiously, once the bond market is cornered, Japan can reinstall negative interest rates, effectively paying itself money on bonds before it wipes them out in debt revision procedure annually.
Literally, this scheme pays for itself.
Inflation remains low
Japan reported its consumer price index, excluding fresh food and energy, rose half a percent in the 12 months through March.
“In order to reach [our]2 percent inflation target, I think the Bank of Japan must continue very strong accommodative monetary policy for some time,” Kuroda added in his interview with CNBC.
Protectionism, unexpected rapid tightening of monetary policy in some countries, and geopolitical tensions in North Korea and the Middle East pose potential risks, Kuroda said.
It’s pretty amazing how Japan has failed to destroy its currency despite decades of trying. Once again, I repeat my foolproof plan to cure low inflation in Japan.
This article has been republished with permission from Mish Talk.