600 million yen donation to LDP turns into 3 billion yen tax cut

Akahata on October 26 revealed that six major automakers and the three largest steelmakers have received three billion yen in corporate tax breaks in return for 600 million yen in donations to the ruling Liberal Democratic Party during the past three years.

The Industrial Revitalization Law that provides large companies with tax breaks was enacted in October 1999, endorsed by the LDP, the Liberal Party, the Komei Party, and later the Democratic Party of Japan.

Between October 1999 and July 2003, 217 companies saved 81 billion yen through corporate tax breaks in exchange for their plans to cut their number of employees by 90,000. This was a 900,000 yen tax cut per employee, and these corporations were then able to donate more to the LDP.

Under the Industrial Revitalization Law, suggested by business circles in the first place, if a company's restructuring plan meets the government's standards, this company becomes eligible to receive tax breaks.

The business community donates vast amounts of money every year to press political parties, except for the Japanese Communist Party, to promote legislation in favor of the business world. The Industrial Revitalization Law is a typical example of this.

The JCP has consistently opposed the system of using tax money to encourage corporate restructuring.

company Plans to cut workforce Received in tax breaks Donated to the LDP
Mitsubishi Motors Corporation 4096 609 million yen 44 million yen
Toyota Motor Corporation 3259 355 million yen 194.2 million yen
Mazda Motor Corporation
1199 353 million yen 55.2 million yen
Hino Motors, Ltd.
1060 333 million yen 35.37 million yen
Fuji Heavy Industrial Ltd.
1318 310 million yen 55.35 million yen
Suzuki Motor Corporation 873 178 million yen 67.82 million yen
JFE (Kawasaki Steel Corporation and NKK Corporation merged in Sep. 2002) 3295 578 million yen 82.6 million yen
Sumitomo Metal Industries, Ltd. 1945 246 million yen 41.3 million yen
Kobe Steel, Ltd. 692 17 million yen 31.3 million yen
Total 17737 2979 million yen 607.14 million yen

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