With demographic change affecting Japan's finances more every day, the government's tax panel proposed Tuesday the scaling back of tax breaks for the elderly and doubling the consumption tax to pay for rising pension and medical care costs.

In its medium-term tax reform proposals, the Tax Commission said the government will need to increase the consumption tax, which presently stands at 5 percent, to 10 percent or higher within the next 10 to 15 years.

The report also calls for steps that would make wealthier elderly people share more of the nation's financial burden, including by trimming tax deductions for public pension payments.