 JCP Shii: 3.3 trillion yen tax increase on working people will be disastrous Japanese Communist Party Chair Shii Kazuo in parliament criticized Prime Minister Koizumi Jun'ichiro for excessively burdening the working people with the planned 3.3 trillion yen tax increase on the pretext of funding the pension system. In the House of Representatives Budget Committee meeting on October 18, Shii pointed out that abolishing the fixed rate cuts in income and resident taxes will impose additional tax burdens on working people. Prime Minister Koizumi Jun'ichiro justified his plan to abolish the fix-rate tax reduction, which was introduced in fiscal 1999, saying that "phased abolition of the fixed-rate tax reduction system is an option." Presently, 20 percent (max. 250,000 yen) is deductible from the income tax, and 15 percent (max. 40,000 yen) from the residential tax. If this exemption is removed, working people with an annual income of 5 to 6 million yen will face a 22 percent tax increase. Shii said to the prime minister that it is illogical to impose a greater tax burden on working people on the pretext of reducing the burden concerning pensions on this group of people. The prime minister evaded a straight answer, and said, "Funds should be sought somehow." Shii asked why the pension funds should be sought exclusively from extra payments from ordinary people while corporate tax cuts are kept intact, despite a business recovery. The prime minister failed to answer this question. Shii said, "The government policy can be boiled down to levying taxes on people whom the government finds it easiest to pressure whenever pension funds fall short. This will increase people's distrust in the pension system. This is what the Koizumi 'reform' is all about." (end) |