Japanese media report: Prime Minister Fumio Kishida is calling for a tax hike of 1 trillion yen ($7. billion) by 2027 to finance Japan’s massive defense development. Now comes the hard part of the government: choosing which tax to raise, where to set the new tax and what the schedule will look like. But the largest faction of the ruling Liberal Democratic Party, once led by the late Shinzo Abe, is not making the process any easier. Seiwa Kai members voiced strong opposition to the raise at the December 8 meeting. Biden kishida Jun 9, 2022 Strong tax hike equals tighter fiscal policy (all else being equal) – Hard to see monetary tightening in Japan so far.