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...stanch the economic decline by borrowing hundreds of millions to remake the city as a tourist destination, only to fail miserably-as Yubari's shuttered amusement park, melon museum and robot museum testify. After racking up over $500 million in debt-roughly 14 times the city's annual tax revenue-Yubari was forced to declare bankruptcy last summer, the first Japanese municipality to do so in 14 years. Late last year the city government announced a harsh fiscal-restructuring plan that would involve raising local taxes to the maximum while cutting public services to the bone. With its crippling debt...

Author: /time Magazine | Title: Can Shinzo Abe Find His Way? | 2/15/2007 | See Source »

...convention in January, Abe declared that "economic growth is not for business enterprises, it is for the public," and later called on Keidanren, Japan's leading business federation, to raise wages. But Keidanren head Fujio Mitarai has rebuffed those calls, lobbying the government instead to lower corporate tax and raise the consumption tax, shifting more of the financial burden to ordinary workers. "In his heart Abe feels consideration for households," says Tsuyoshi Takagi, president of the nearly 7-million-strong Japanese Trade Union Confederation. "Yet he's pushing reforms for [the benefit of] business. People are disappointed...

Author: /time Magazine | Title: Can Shinzo Abe Find His Way? | 2/15/2007 | See Source »

...responded to opposition by shifting the blame to the old guard with accomplished political jujitsu, Abe and his novice team seem to lack the ability-or stomach-to take his fight for reform to the public. He punted on the critical question of whether to raise Japan's consumption tax to help cut public debt, delaying the potentially unpopular decision until after the summer elections-a worrying return to the pre-Koizumi politics of delay. No less a conservative icon than former Prime Minister Yasuhiro Nakasone argued in the Japan Times on Feb. 10 that Abe appeared "long on rhetoric...

Author: /time Magazine | Title: Can Shinzo Abe Find His Way? | 2/15/2007 | See Source »

...left hates Bush so much that it salivates at any hint of misdeed, whether warranted or not. There are plenty of reasons to criticize the Bush Administration, but special prosecutor Patrick Fitzgerald is wasting hundreds of thousands of tax dollars on a case he made up because I. Lewis (Scooter) Libby cannot remember exactly how conversations went three years ago. I would be in real trouble if I were in Libby's spot, since I can't remember what I said last week...

Author: /time Magazine | Title: Letters: Feb. 26, 2007 | 2/15/2007 | See Source »

...offset general operating costs, according to Bridget T. Long, an assistant professor in the Graduate School of Education who studies the economics of higher education. Helping to offset costs, many American schools receive a portion of their funding from government sources as well, in the form of direct appropriations, tax benefits, and federal student aid, according to Long. Tuition and sales of products and services generally help to make up the other portion. As a result, “American institutions have much more diversified revenue streams,” Long said. While Harvard and Yale have the largest endowments...

Author: By Bernard P. Zipprich, CONTRIBUTING WRITER | Title: British Universities Try to Enlarge Coffers | 2/13/2007 | See Source »

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