tax

Japan Press Service Co., Ltd. is the only news agency providing information of progressive, democratic movements in Japan

Ruling parties agree to end tax breaks on salaried workers

The ruling Liberal Democratic and Komei parties on December 15 reached an agreement on an outline of tax "reform" that will abolish the fixed-rate cuts on income and residential taxes in 2007.

Under the plan, the fixed rate tax breaks will be scaled down to 50 percent in 2006, and a salaried worker of a four-member household with an annual income of 5 million yen in 2007 will have to pay an extra 35,000 yen in taxes.

On the other hand, tax breaks to large corporations will continue and even be increased, though with some adjustments.

The outline calls for a consumption tax increase more clearly than that in the 2005 outline.

Japanese Communist Party Policy Commission Chair Koike Akira on the same day published a statement criticizing the ruling parties' tax "reform" outline.

Koike stated that the outline is a breach of the ruling parties' public promise in the general election of no tax increase on salaried workers. He said that the estimated extra burden of 3.3 trillion yen on the public while household income continues to decline will only cause more hardships among the people.

Concerning tax breaks on large corporations, Koike said that it is unacceptable to legally make such breaks permanent. Koike demanded that large corporations that have amassed record high profits bear corresponding tax responsibilities.
- Akahata, December 16, 2005