The ruling coalition approved over 2 trillion yen worth of tax increases Thursday to be implemented in fiscal 2006. The hikes include the elimina tion or reduction of tax breaks, a cigarette levy increase and higher tax rates on wine and so-called third-category beers.

As the population ages and the workforce shrinks, taxes need to increase for some time to keep up with rising health and medical costs -- even if government gets smaller, economists say. Here's the lowdown on what politicians are saying about how much taxes are to rise in the next two years, and what they're not saying about future taxes and cost cuts:

Who will the tax changes hit hardest?