 Don't impose further burdens when income is decreasing: JCP Shii At the February 3 House of Representatives Budget Committee meeting, Japanese Communist Party Chair Shii Kazuo criticized the Koizumi Cabinet for planning to increase taxes at a time when household incomes are decreasing. To show how unreasonable the government plan is, Shii cited to the Cabinet Office's report "Japan's Economy 2004 - possibilities and risks of sustainable development" that states, "Income must be recovered for the sustainable recovery of personal consumption." He urged Prime Minister Koizumi Jun'ichiro to cancel the tax increase plan, saying, "Your prescription is the exact opposite of the diagnosis." The report also says, "While companies are increasing their profits, employees' wages are decreasing. The inverse correlation has been growing since 1995." Referring to this analysis, Shii criticized Koizumi for groundlessly stating that incomes will increase in the future. Household incomes have been declining since 1997 when a 9 trillion yen extra burden was imposed. The Koizumi Cabinet plans to scale down and abolish the fixed-rate tax cuts in FY 2005 as well as increase the consumption tax rate in 2007. Stop using tax money for wasteful public works projects Shii also demanded that the government stop expending tax money on wasteful public works projects, including the construction of a second runway at Kansai International Airport that will cost taxpayers more than one trillion yen (100 billion dollars). Pointing out that the present runway has the capacity for 160,000 takeoffs and landings a year and accepts only 100,000 flights, Shii stated, "This is nothing but wasteful expenditure on an unnecessary runway." Reminding Prime Minister Koizumi Jun'ichiro's of the promise he made in July 2002 to the effect that he would "thoroughly correct the wasteful use of tax money rather than thinking of increasing taxes, Shii said, "It is impermissible to force people to pay more while continuing wasteful expenditures." The prime minister could only say, "I'm keeping my pledge. Expenditure on public works projects has been reduced for four consecutive years." Shii said, "A reduction in total expenditure must not be used as a pretext for allowing wasteful public works projects to be maintained," presenting the latest data published by the Finance Ministry showing that the number of public works projects (except for construction of schools and hospitals) in Japan is much larger than that in other countries. Draft FY 2005 budget allocates an extra 30-billion yen for large public works. (end) |