Kan Faces Budget Funding Discord as DPJ Members Oppose Taxes
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Japanese Prime Minister Naoto Kan is facing a backlash from ruling party lawmakers over plans to raise taxes to pay for earthquake reconstruction, adding to concern he will be unable to contain the world’s largest debt.
Kan will find it “difficult” to convince politicians in his Democratic Party of Japan of the need for tax increases to fund the rebuilding when the economy is shrinking, DPJ tax panel head Sakihito Ozawa said in a May 20 interview. Ozawa instead advocated bond sales and central bank purchases of debt -- steps opposed by senior Cabinet members including the economy minister.