The good and the bad of Takaichi's proposed food tax cut

I don't think any of us need an economics degree to notice that grocery bills keep creeping up, so when Prime Minister Takaichi announced a plan to cut the sales tax on food for two years, it sounded like genuinely good news for everyday households, mine included.

The good part is simple, in that lower tax means cheaper food, and that's an immediate win for families, pensioners, students, and expats living on fixed or slow-growing salaries. Even a small cut at the checkout could save a few thousand yen a month, and that really adds up when prices for basics like rice, vegetables, and cooking oil are already so much higher than they used to be. It also shows the government is at least trying to ease cost of living pressures, so I give them some points for that.

The bad part is less obvious, but still extremely important to consider. Experts are warning that once a tax is cut, it's very hard to bring it back, meaning that the government could lose a big chunk of money every year going forward. Japan already has a massive national debt, so less food tax income could lead to problems down the road, such as higher taxes in other areas, fewer public services, or more borrowing.

In short, cheaper groceries now would feel great, but if it weakens Japan's finances long term, the bill may just show up later in a different form.