But perhaps a tax increase is needed...

something is. Hopefully it will not damage the economy which would than defeat the purpose of an increase (to get increased revenues).

However, there have already been numerous cuts in many programs as Japan tried to revive its economy. Why, perhaps there have even been some cuts in road building programs. Perhaps.

But one thing which is being cut---and taxes increased for---is the apparently collapsing healthcare system. Japan has had reasonably good health care with excellent accessibility to most for years. As the population ages, something has to give and it seems it already has started. Japan Focus has a good article on the by Yabuki Toshihito here.

It's very worrying for anyone with long-term plans to live in Japan. You might want to reconsider for this reason alone. It may become as expensive and difficult to access for lower income people as that of the US.