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2012 June 6 - 12 [POLITICS]

Consumption tax hike will crush young people’s aspirations: JCP Miyamoto

June 12, 2012
Japanese Communist Party representative Miyamoto Takeshi demanded that the national government withdraw its bill on a consumption tax hike as it will force college students to have to face a bleak future.

Miyamoto on June 11 criticized the government bill to double the consumption tax rate to 10% in two stages by 2015 at a meeting of the House of Representatives special committee on an “integrated reform” of social services and the tax system.

He pointed out that the average annual income of parents of a college student has decreased by 1,500,000 yen and the amount of money sent for living expenses to a student from their parents also dropped by 330,000 yen in the past 10 years since 2000. It has forced students to cut their annual living expenses by one third to 660,500 yen compared to 10 years ago.

Showing that the consumption tax will be imposed on college students’ living expenditures which amounts to as much as 570,000 yen a year, with the exceptions of tax-exempt rent and medical expenses, Miyamoto said, “How can the government make further attacks on students and their families who are already struggling financially?”

The JCP lawmaker also said that Japan’s “scholarship” program is in actuality student loans one and that only Japan and Iceland do not have grant-type scholarship programs among member nations of the Organization for Economic Cooperation and Development (OECD). In Iceland, there is no need for a scholarship program because colleges are tuition free.

Miyamoto pointed out that college graduates run up debts of up to 7,750,000 yen after receiving “scholarships” for 4 years at college. “A consumption tax hike will crush young people’s dreams and hopes by forcing even more financial burdens and debt obligations on them,” he said.
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