Japan

The Mainichi | English | News | Jan. 23, 2026 | Accidents

A sightseeing helicopter crashed on January 20, 2026, inside the main crater of Mount Nakadake, part of Mount Aso in Kumamoto Prefecture, a popular tourist destination in Japan. Mount Aso is known for helicopter tours that offer close-up views of its craters, attracting many foreign visitors, with about 1.18 million inbound tourists visiting Aso-Kuju National Park in 2024, making it Japan’s second most visited national park.

Despite the volcano's active status, with an eruption alert level of 1 and generally low volcanic activity, manned helicopter flights are regularly allowed in the area as long as weather conditions are favorable. Drones and unmanned aircraft are banned within a 1-kilometer radius of Mount Nakadake’s craters to avoid difficult recoveries after crashes. The crashed helicopter was found on the northern slope of the first crater, with ongoing rescue efforts monitoring volcanic gas levels.

Local authorities expressed surprise over the accident as flying around the crater was not previously considered dangerous. Decisions on how to respond to the crash have not yet been made. The incident raises questions about the safety protocols surrounding aerial tours above active volcanic sites.

The Mainichi | English | News | Jan. 23, 2026 | UndeterminedTaxes

Japanese Prime Minister Sanae Takaichi announced on January 19, 2026, that the ruling Liberal Democratic Party will propose eliminating the consumption tax on food and beverages for two years in the upcoming House of Representatives election campaign. This measure aims to ease the financial burden on middle- and low-income earners amid persistently high food inflation.

Takaichi plans to fund the tax cut by reallocating existing subsidies, special tax measures, and non-tax revenue rather than issuing deficit-financing bonds. She emphasized the need to consider impacts on financial markets, including interest rates, exchange rates, and local government finances. The timing of the tax cut was not discussed during the press conference despite prior speculation about a potential reduction around September.

The tax reduction is expected to cause an annual revenue loss of about 5 trillion yen ($31.6 billion), with roughly 2 trillion yen ($12.6 billion) impacting local governments. This has raised concerns about fiscal deterioration, reflected in rising government bond yields and potential yen depreciation, which could further increase inflation through higher import costs.

The opposition Centrist Reform Alliance advocates for a permanent zero consumption tax on food and beverages, making tax reduction a realistic prospect regardless of the election outcome. However, some economic officials warn that continued fiscal loosening by both major parties risks long-term fiscal collapse.

米国経済見通し 犠牲になるのは財政

Daiwa Institute of Research | Local Language | AcademicThink | Jan. 23, 2026 | UndeterminedBudgets-Budgeting

The U.S. economy is showing signs of recovery from the negative impacts of the recent government shutdown on both corporations and households, maintaining a firm hold. However, widening disparities within households could intensify due to the "K-shaped economy," as higher-income individuals benefit from federal income tax refunds under the 2025 Trump Tax Cut 2.0 beginning February 2026, while low- and middle-income groups face declining purchasing power following the expiration of Obamacare’s enhanced tax credits at the end of 2025, resulting in increased health insurance premiums.

Congressional debates over extending these tax credits have complicated the fiscal 2026 budget process. Democrats have made extending the tax credits a condition for budget approval, whereas Republicans have signaled reluctance for full extension, preferring a continuing resolution to delay decisions. This deadlock caused the longest government shutdown on record in October–November 2025. A continuing resolution passed in mid-November prolonged the debate, which gained momentum in early 2026. The House approved a three-year extension plan in January with Democratic leadership and support from 17 Republicans, particularly those in competitive districts, but the Senate Republicans remain cautious, leaving the bill’s future uncertain.

Criticism of the tax credit extension centers on the belief that the credits serve as subsidies to private insurers and would increase the federal deficit. The House-passed three-year extension would raise the fiscal deficit by about $80 billion over ten years, potentially increasing to $350 billion if made permanent. While extension would relieve financial pressure on low- and middle-income households, concerns persist that deteriorating fiscal conditions amid uncertain tariff revenues could elevate the term premium and push up U.S. 10-year Treasury yields. This rise in yields could negatively impact interest-rate-sensitive sectors such as capital investment, housing, and durable goods consumption.