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To pay for defense buildup, Kishida must act swiftly on taxes

Resistance will only grow over time, pushing Japan toward costly deficit spending

| Japan
If the tax debate goes for an extended period, Japanese Prime Minister Fumio Kishida will feel rising pressure from leading party stakeholders not to increase rates.   © Reuters

Jonathan Grady is founding principal of The Canary Group, an artificial intelligence-driven forecasting service based in New York.

If Prime Minister Fumio Kishida is going to put through tax increases to fund Japan's biggest postwar defense spending surge, he has only a narrow window of opportunity to do so. Timing is crucial as political headwinds will make his Liberal Democratic Party less supportive of tax hikes over time.

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