why would they do this when consumer spending is already down? tax something which is still actively moving.

The Organization for Economic Cooperation and Development last week urged Kan’s government to at least double a sales tax to 10 percent and to implement increases as soon as possible. Japan’s total public debt will reach 204 percent of gross domestic product this year, according to the OECD, the highest level among nations tracked by the group.

Japan maintains its credit grade for now because of a strong financial system, a surplus of funds within the nation and a “diversified” economy, according to S&P.