The Japanese consumer spending has recently been sluggish because of some negative factors such as psychological effect of long time deflation, cut on tax incentives and heavier burden of social security cost on households. The improving employment situation is expected to lead to further expanding of consumer expenditure.
In light of rebuilding of the public finance, surplus to the budget or increased revenue from taxes should be in principle used to pay back the public debts in the supplementary budget.
The effective corporate tax rate should be lowered to the level that ensures Japanese companies' business activities on an equal footing with foreign competitors. Companies with more competitiveness and innovations will bring around more jobs and consumer spending.