Social security, tax reform outline

Kyodo

The integrated social security and tax reforms approved Friday by Prime Minister Yoshihiko Noda’s Cabinet call for:

Raising the 5 percent consumption tax to 8 percent in April 2014 and to 10 percent in October 2015.

Clarifying that the tax hike plan would be shelved if the economy faces serious downturn risks.

Passing a bill to trim 80 seats from the 480-seat Lower House before raising the sales tax.

Cutting labor costs for public servants as a precondition for the tax hike.

Making a permanent mechanism for consumption tax revenues to finance 50 percent of basic pensions.