Here is an excellent write up on the issues facing Japan. The article is from Bloomberg titled, "Japan May Miss Debt Goal Despite Tax Hikes" Question: If raising taxes is the solution, then why would the Japanese miss their objectives? Question 2: If raising taxes was the solution to the debt and/or deficit problem, why not simply raise taxes each time there is a spending issue by the Government?
The Japanese are in a precarious position. For starters they have a relationship with China. According to this article, "Japan looking to buy Chinese Government Bonds", China is experiencing a slow down in there economy, and Japan is attempting to purchase some of the Chinese Government's debt. Important Note: Japan has been China's biggest trading partner since 2009. The Japanese also have much of the United States Government's debt also. As the US is experiencing a financial correction, the Japanese are feeling the pinch.