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HOME  > Past issues  > 2012 May 30 - June 5  > JCP Shiokawa reveals gov’t tricks behind consumption tax hike
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2012 May 30 - June 5 [FINANCE]

JCP Shiokawa reveals gov’t tricks behind consumption tax hike

May 30, 2012
Japanese Communist Party lawmaker Shiokawa Tetsuya criticized the government for using tricks to argue that a consumption tax hike is inevitable in a rapidly aging society.

He questioned the government on May 29 about an “integrated reform” of social services and the tax system at a House of Representatives special committee meeting.

The administrative authorities used approximately 800 million yen in tax revenues to produce its public relations paper pushing for the “integrated reform”. The paper argues that a consumption tax increase is essential to cover the expenses of social services because the aged population is sharply increasing. It shows that the percentage of people aged between 15 and 65 in relation to people aged 66 and over is decreasing. The ratio was 9:1 in 1965, 3:1 in 2012, and projected to be 1:1 in 2050, it claims.

Shiokawa pointed out that working people are supporting children as well as the aged. He asked about the ratio of the work force to the total population in Japan, saying, “In fact, the working population is supporting all the people.”

Minister of Health, Labor and Welfare Komiyama Yoko replied that the proportion of the work force in relation to the entire population was 2.05:1 in 1965, 1.96:1 in 2012, and projected to be 1.89:1 in 2030.

The JCP Dietmember said, “In other words, the ratio will remain as it is in the future. The government should stop stirring up conflict between generations.”

The lawmaker also pointed out that the governmental paper is calling for a social service system supported by the strength of “us all” without referring to the business sector’s share of the cost. “Big businesses pay no consumption tax. It is absolutely unacceptable to force a consumption tax hike on the general public without seeking a fair share of contribution from big businesses,” he added.

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