February 24, 2011
Japanese Communist Party member Sasaki Kensho revealed that a consumption tax hike will deal a heavy blow especially to the elderly and smaller businesses at a House of Representatives Budget Committee meeting on February 23.
For the past 10 years since 2000, citizens’ tax burdens rose by 16 trillion yen, or 150,000 yen per person, due to the tax increases, cuts in benefits, and abolition of tax exemptions carried out by the former Liberal Democratic Party-led government. None of the regressive steps taken have been corrected under the new government in power during the last one and a half years.
Sasaki stressed that what voters anticipated in the new government led by the Democratic Party of Japan was a change from the old government’s policies of cutting welfare programs and raising their tax rates.
During the past 10 years, the average annual income for elderly households fell 230,000 yen while their tax burdens increased by 100,000 yen. If the consumption tax rate increases to 15%, they will have to pay an additional 280,000 yen in taxes a year.
Prime Minister Kan Naoto responded to Sasaki by stating that citizens have to bear a certain burden in order to maintain the social welfare programs.
Regarding small- and medium-sized enterprises, the JCP representative stated that many subcontractors are suffering from cuts in unit prices and cannot easily shift the additional burden of the consumption tax onto the sales price.
Minister of Economy, Trade and Industry Kaieda Banri acknowledged that 50% to 70% of SMEs are paying for the consumption tax differential themselves.
Sasaki also pointed out that the government refunds the consumption tax to large export companies such as Toyota (210.6 billion yen) and Sony (106 billion yen). Finance Minister Noda Yoshihiko said that the total amount of the refunded tax to major export firms in FY 2008 was 2.5 trillion yen.
Sasaki expressed his firm opposition to a consumption tax increase, stating that it is a device to collect more money from ordinary people in order to give ever more generous tax breaks to major corporations.
For the past 10 years since 2000, citizens’ tax burdens rose by 16 trillion yen, or 150,000 yen per person, due to the tax increases, cuts in benefits, and abolition of tax exemptions carried out by the former Liberal Democratic Party-led government. None of the regressive steps taken have been corrected under the new government in power during the last one and a half years.
Sasaki stressed that what voters anticipated in the new government led by the Democratic Party of Japan was a change from the old government’s policies of cutting welfare programs and raising their tax rates.
During the past 10 years, the average annual income for elderly households fell 230,000 yen while their tax burdens increased by 100,000 yen. If the consumption tax rate increases to 15%, they will have to pay an additional 280,000 yen in taxes a year.
Prime Minister Kan Naoto responded to Sasaki by stating that citizens have to bear a certain burden in order to maintain the social welfare programs.
Regarding small- and medium-sized enterprises, the JCP representative stated that many subcontractors are suffering from cuts in unit prices and cannot easily shift the additional burden of the consumption tax onto the sales price.
Minister of Economy, Trade and Industry Kaieda Banri acknowledged that 50% to 70% of SMEs are paying for the consumption tax differential themselves.
Sasaki also pointed out that the government refunds the consumption tax to large export companies such as Toyota (210.6 billion yen) and Sony (106 billion yen). Finance Minister Noda Yoshihiko said that the total amount of the refunded tax to major export firms in FY 2008 was 2.5 trillion yen.
Sasaki expressed his firm opposition to a consumption tax increase, stating that it is a device to collect more money from ordinary people in order to give ever more generous tax breaks to major corporations.
