15 years of the consumption tax has revealed government lies regarding making money for social services -- Akahata editorial, April 1 (excerpts)

It is now 15 years since the consumption tax system was introduced at three percent in April 1989, and seven years since the rate was increased to five percent in 1997.

The government and ruling parties have always said that the money from the consumption tax is essential for maintaining social welfare. However, the 15 years of the consumption tax shows that they have deceived the public.

The people have paid 136 trillion yen in consumption taxes during the last 15 years. In the same period, three corporate-related taxes, including the corporation tax, have been cut by 131 trillion yen.

This means that most of the consumption tax money levied has been used to reduce corporate taxes instead of improving social welfare.

The business circles have a reduction in their tax burden in mind when they argue that the consumption tax system is necessary for social services. Japanese corporations' share of burdens for employees' premiums as well as corporate tax rates is about 50 or 80 percent of what is shouldered by European corporations.

Without depending on the consumption tax, minimum sources for social welfare can be found if tax money is equitably allocated. One effective way will be to cut most of the budget allocations for wasteful and for the most part unnecessary expressway construction, and redirect funds to more social welfare programs.

Japan's fiscal policy has been seriously distorted in the last 15 years. Progressive taxation that calls for taxes to be paid according to earnings has been undermined, and the social welfare system seriously damaged.

Even so, the government and business circles are calling for the consumption tax rate to be increased to more than ten percent from 2007. This will be an unprecedentedly regressive tax system that will worsen living conditions for most people and weaken Japan's economy.

The Japan Business Federation has urged the government to immediately decide on the tax rate increase by using corporate donations as a lure. Anticipating receiving the large sum, the Liberal Democratic and Democratic parties are competing with each other to realize the tax rate increase.

Let us join forces with the Japanese Communist Party to deal a heavy blow on this attempt that benefits major corporations. (end)