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Abe recommits to sales tax hike

Prime Minister Abe has pitched the snap legislative election that he has called for next month as a plebiscite on fiscal policy. He is arguing that the sales tax hike scheduled for October 2019 should be used to step up spending rather than pay down debt as originally planned. While some volatility in consumer spending is unavoidable around the time of the tax hike, higher public spending should dampen the effect.

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