Abenomics and the Japanese VAT tax hike
Everybody seems to be worried about the raise in the consumption tax, and how it has thus far crippled the efforts to bring the Japanese economy out of stagnation. But Japan has 200% of DGP in public debt, and it cannot leave its public finances go south, not even temporarily.  

My impression is that it was the choice to lower corporate tax and "in exchange" increase V.A.T. (perhaps under the impression that it was low, if they looked at European Union levels). Demand was supposed to strengthen through direct transfers, while lowering corporate tax is to boost business initiatives, towards investment but also give some added room to increase wages (to help demand).

We' ll see. Up to now, it doesn't go very well.

ADDENDUM  

That the increase in the Sales Tax had as its target to take care of the public finance side of the equation is clearly stated in the IMF-report on the matter, in which we read


  "The consumption tax rate increase in April to 8 percent was a major achievement, but is only a first step towards fiscal
  sustainability...The second consumption tax rate increase in 2015 to
  10 percent with a uniform rate should be confirmed. Raising the tax
  rate further at a moderate pace would help establish fiscal policy
  credibility. Staff estimates that fiscal consolidation in 2015 would
  slow growth by ½ percent, leaving growth in 2015/16 still above
  potential under the baseline."


A quick journalistic take can be found here.