Hatoyama kicks the Japanese sales tax increase further down the road

Prime Minister Yukio Hatoyama and his DPJ cabinet are interested in reigning in Japan's public debt and funding their own projects like the ¥26,000-a-month child allowance. The prime minister, however, took one controversial option off the table for his four year term: a raise in the sales tax.

Budget experts have estimated that the Japanese sales tax, currently at 5 percent, should be raised to 12 percent to return to fiscal solvency. This would likely, however, provide a crushing blow already weak levels of domestic demand. Last time the government raised the sales tax from 3 percent to 5 percent in 1997, retail sales tanked.

What does this non-tax increase mean for you? Buying stuff in Tokyo likely will not become more expensive over the next few years. That seems great, but will the 5% discount counterbalance your guilt of not doing your part to bring down Japan's debt?