Government plan gives the wealthy tax breaks while forcing working people to pay more

Japanese Communist Party Policy Commission Chair Koike Akira in parliament criticized the government for planning to give generous tax breaks to the wealthy and large corporations while increasing taxes on the working people at a time when large corporations are making record profits through slashing workers' wages.

Koike used the House of Councilors Budget Committee meeting on March 4 to demonstrate that large corporations capitalized at one-billion yen and over have increased their operating profits by six trillion yen between 1997 and 2003, and that their executives' salaries have increased by 2 trillion yen, while salaries for employees have decreased by 4.5 trillion yen.

Koike asked, "Executives at Nissan Motor Co. are paid more than those at any other company but it will continue to enjoy a tax break of 30 million yen, while elderly and ordinary working people are forced to endure increased burdens. Do you think you can convince people of the rationality of such a plan?"

Prime Minister Koizumi Jun'ichiro replied, "Will the Japanese economy develop under a government policy of treating large corporations harshly? They will flee the country if they are asked to shoulder heavier tax burdens."

Under the government plan, about five million pension recipients will be forced to pay income tax. Koike criticized the government for attempting to force the disdvantaged, including elderly and handicapped people, to pay more. (end)

Copyright (c) Japan Press Service Co., Ltd. All right reserved.