October 7, 2011
The government announced that it is planning to impose higher taxes both on the general public and corporations to secure funds for post-disaster reconstruction. The announcement makes it sound as if there will be a sharing of the burden, but corporations will actually receive 11.6 trillion yen in tax cuts while the general public will pay an extra 8.8 trillion yen in taxes during the next ten years.
Japanese Communist Party Daimon Mikishi on October 6 at an Upper House special committee meeting on disaster reconstruction said, “It is nothing but smoke and mirrors,” and demanded that the government impose an appropriate share of the tax burden on large corporations.
According to the government plan, it will ask salaried employees and self-employed individuals to pay 8.8 trillion yen more in taxes on income, residence, and cigarettes for the next ten years.
As for an increase in corporate taxes, the ploy is this: The government will cut the corporate tax paid to the national government (not to local governments) from the present 30% to 25.5% at first, and then it will increase the rate by about 10% only for three years.
As a result, the corporate tax rate will be about 28%, and the amount corporations will receive in tax breaks during the next ten years will be 11.6 trillion yen.
When Daimon asked about this trick, Prime Minister Noda Yoshihiko explained that the government needs “to cut the corporate tax paid to the national government to ensure international competitiveness.”
Daimon criticized such an idea by arguing, “The country’s overall economy will not recover with the growth of only large corporations.”
Japanese Communist Party Daimon Mikishi on October 6 at an Upper House special committee meeting on disaster reconstruction said, “It is nothing but smoke and mirrors,” and demanded that the government impose an appropriate share of the tax burden on large corporations.
According to the government plan, it will ask salaried employees and self-employed individuals to pay 8.8 trillion yen more in taxes on income, residence, and cigarettes for the next ten years.
As for an increase in corporate taxes, the ploy is this: The government will cut the corporate tax paid to the national government (not to local governments) from the present 30% to 25.5% at first, and then it will increase the rate by about 10% only for three years.
As a result, the corporate tax rate will be about 28%, and the amount corporations will receive in tax breaks during the next ten years will be 11.6 trillion yen.
When Daimon asked about this trick, Prime Minister Noda Yoshihiko explained that the government needs “to cut the corporate tax paid to the national government to ensure international competitiveness.”
Daimon criticized such an idea by arguing, “The country’s overall economy will not recover with the growth of only large corporations.”
