Japan Press Weekly

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2011 January 5 - 11 [ECONOMY]

PM Kan says he risks his political career on consumption tax hike

Prime Minister Kan Naoto on a TV news program on January 5 stated, “I am prepared to risk my political career” by pushing for an increase in the consumption tax rate.

This comment came out when he was asked by well-known anchor Furutachi Ichiro on the TV Asahi’s major news program, “Hodo (News) Station.”

Asked about the proposed cut in the number of Diet seats, Kan answered, “Both reducing Diet seats and correcting discrepancies in the value of votes are important, so I will work hard to implement these policies as party tasks.”

Uchida Keiji, secretary general of the National Association to End the Consumption Tax, on January 7 made the following comment:

“Improving the social welfare system is necessary. However, it is wrong to rely on the consumption tax which imposes heavier burdens on low income earners in order to secure finance for social welfare programs. The social welfare system should be funded through a progressive taxation system based on the principle of ability to pay.

Although the consumption tax was first introduced in the guise strengthening the social welfare system, in reality, social welfare programs keep getting worse and worse. We will increase our effort to promote grassroots campaigns opposing an increase in the consumption tax rate nationwide.”

Hasegawa Hidetoshi, representative of the Liaison Council of Various Circles for Prevention of Mal-Revision of the Constitution, criticized, “PM Kan expressed his determination to conclude the discussions on the consumption tax hike by June. The Democratic Party of Japan is also aiming to promote discussions about reducing the number of Diet seats under the pretext of a correction of discrepancies in the value of votes in the House of Councilors election.”

He also said, “Now people are begining to realize that politics ruled by the “two-party” system does not change the present politics imposing more pain on them. We have a distinct possibility of creating a national consensus to prevent an adverse revision of the election system, the purpose of which is maintaining two-party control.”