With consolidated tax system big business saves taxes equal to tax increases for the elderly

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With consolidated tax system big business saves taxes equal to tax increases for the elderly

Japanese Communist Party Dietmember Sasaki Kensho revealed that the amount of tax cuts for major corporations implemented through the introduction of the consolidated tax payment system was roughly equal to the amount of tax hikes for the elderly implemented in the past two years.

This shows that the increased tax revenue collected from the elderly was used to offset the decrease in corporate taxes.

In the year period that ended on June 30, 2006, corporations adopting the consolidated tax payment system paid 368.8 billion yen in taxes less than the estimated amount of taxes without this system, according to Sasaki.

On the other hand, due to the removal or decrease of various tax deductions, the amount of yearly increase in income and residential taxes for the elderly has reached 397 billion yen.

The consolidated tax payment system was introduced in 2002 by the Koizumi Cabinet to meet the demand of business circles.

With this system, major corporations are estimated to have saved a total of 1.03 trillion yen during the past four years.
- Akahata, November 14, 2006