Party heads debate consumption tax and Futenma base issue

Japan Press Weekly

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Party heads debate consumption tax and Futenma base issue

At a nine-party-heads’ debate televised on June 22, Japanese Communist Party Chair Shii Kazuo stated that the JCP is willing and able to represent citizens’ voices to the U.S. government as well as to Japanese business circles concerning issues of the consumption tax hike and the U.S. Futenma base.

Consumption tax increase

Shii, pointing out that the consumption tax is “the worst form of unfair taxation,” criticized both the Democratic and Liberal Democratic parties for declaring their intent to increase the consumption tax rate to 10 percent.

“The purpose of the consumption tax raise has nothing to do with financial reconstruction or improving social services. It is to cover a deficit created by corporate tax cuts,” said Shii, and stressed the following: By lowering the corporate effective tax rate from the current 40 percent to 25 percent as business circles are calling for, nine trillion yen of tax revenues will disappear, so that most of the 11 trillion yen in added revenues expected to be created by a five-percent raise in the consumption tax rate, will be used to make up for that loss.

On the other hand, Prime Minister Kan Naoto, who is also the head of the ruling DPJ, again stated that he will consider the LDP’s proposal to hike the consumption tax rate to 10 percent and convene a cross-party meeting on this subject. LDP President Tanigaki Sadakazu responded to Kan by saying, “Such cross-party talks were originally proposed by us. We are willing to accept the invitation.”

U.S. Futenma base

JCP Shii demanded that the prime minister retract the latest Japan-U.S. agreement and conduct a renewed negotiation with the U.S. government for the unconditional return of the U.S. Marine Corps Futenma Air Station in Okinawa.

“To comply with the Japan-U.S. agreement is the promise my cabinet has made, and I will abide by it,” said Kan, adding that he will maintain and develop the bilateral

alliance with the U.S. as “one of the factors contributing to the stability in the Asian region.”

The prime minister also stated that his cabinet recognizes that “the presence of the U.S. forces in Japan fulfills the function of providing deterrence as viewed with a broad perspective.”

- Akahata, June 23, 2010