November 30, 2009
In the wake of the government panel’s budget screening process, preparation of the FY 2010 budget is in the final stage.
Prime Minister Hatoyama Yukio said, “Although I need to make political decisions on some parts of the proposed cuts, basically, I consider the budget-screening team’s determination very seriously.”
Huge amount of wasteful spending left untouched
The budget screening process clearly suggested cutting some budget items as wasteful spending, but it still left the huge amount of wasteful budget allocations untouched. In order to draft the budget putting priority on people’s livelihoods, such allocations should be cut drastically.
The screening process avoided discussing cuts in military spending, including the budget for helicopter aircraft carriers to send the Self Defense Forces personnel abroad and for the missile defense program contributing to the U.S. military first strike strategy, which may threaten the maintenance of peace throughout the world and not just in Asia. Regarding the “sympathy budget” for the U.S. forces in Japan, only the wage level of Japanese personnel at U.S. bases in Japan was discussed.
A large amount of squandering of large-scale public works projects, such as a Tokyo Metropolitan expressway construction project and hub harbor construction project, remained unchanged.
We cannot overlook the fact that the budget screening team arbitrarily determined to discard budget items, including medical services, education, and science technology, which are essential for people’s livelihoods and Japan’s future.
Those who had been advocates of the Koizumi “structural reform policy” are members of the budget screening team. The popular verdict delivered in the August general election clearly opposed the “structural reform policy” which harmed people’s living conditions by promoting deregulation in the labor market and reducing social welfare expenditures. It is unacceptable that the Hatoyama government in its budget drafting procedure again follows the Koizumi efficiency-oriented policy which took a hostile view toward measures to protect people’s livelihoods. “Political decision” from the viewpoint of improving people’s living conditions should be made to override the budget screening team’s questionable proposal.
Discussion is underway in the Government Tax Commission (chaired by Finance Minister Fujii Hirohisa) to compile a report on December 11 on the “Outline of Tax Reform” for the next fiscal year.
The ruling Democratic Party in its election “Manifesto” called for a shift from “deductions”. It promised to abolish deductions for spouses and dependents from taxable incomes and introduce a child allowance. Also, the Government Tax Commission is leaning toward proposing abolition of the deduction for spouses, while putting off the abolition of the deductions for dependents.
The DPJ ‘Manifesto’ makes it clear that the deductions of taxable incomes for dependents will be abolished except for dependents who are high school and university students and elderly. Nevertheless, the Finance Ministry is calling for these special deductions to be abolished.
The ministry’s promise to pay “child allowances” means a tax increase for all households with dependent family members aged 69 and younger except households with dependent children up to junior high school age. It is completely wrong to count on mass tax increases for securing revenue sources in order to improve financial support for certain households.
The policy of shifting emphasis from “deductions” to “allowances” as means of improving people’s livelihoods will inadvertently force many people to pay more in taxes while lowering the already too low tax exempt limit.
The need is to move away from old policies
The Ministry of Economy, Trade and Industry is calling for the corporate effective tax rate to be further lowered. This shows that the DPJ-led government offers little change from the pro-big business policy of the former Liberal Democratic Party government even though the new government is called upon to force large corporations to shoulder more burdens to ensure revenue sources for improving people’s livelihoods.
Although the Hatoyama government’s budget plan reflects the needs of the public in certain aspects, it is not willing to put an end to the old policy of serving the interests of large corporations and to Japan’s subservience to the United States. The need now is for the new government to free itself from the old political framework that will ensure that tax revenues will be used to improve people’s livelihoods.
- Akahata, November 30, 2009
Huge amount of wasteful spending left untouched
The budget screening process clearly suggested cutting some budget items as wasteful spending, but it still left the huge amount of wasteful budget allocations untouched. In order to draft the budget putting priority on people’s livelihoods, such allocations should be cut drastically.
The screening process avoided discussing cuts in military spending, including the budget for helicopter aircraft carriers to send the Self Defense Forces personnel abroad and for the missile defense program contributing to the U.S. military first strike strategy, which may threaten the maintenance of peace throughout the world and not just in Asia. Regarding the “sympathy budget” for the U.S. forces in Japan, only the wage level of Japanese personnel at U.S. bases in Japan was discussed.
A large amount of squandering of large-scale public works projects, such as a Tokyo Metropolitan expressway construction project and hub harbor construction project, remained unchanged.
We cannot overlook the fact that the budget screening team arbitrarily determined to discard budget items, including medical services, education, and science technology, which are essential for people’s livelihoods and Japan’s future.
Those who had been advocates of the Koizumi “structural reform policy” are members of the budget screening team. The popular verdict delivered in the August general election clearly opposed the “structural reform policy” which harmed people’s living conditions by promoting deregulation in the labor market and reducing social welfare expenditures. It is unacceptable that the Hatoyama government in its budget drafting procedure again follows the Koizumi efficiency-oriented policy which took a hostile view toward measures to protect people’s livelihoods. “Political decision” from the viewpoint of improving people’s living conditions should be made to override the budget screening team’s questionable proposal.
Discussion is underway in the Government Tax Commission (chaired by Finance Minister Fujii Hirohisa) to compile a report on December 11 on the “Outline of Tax Reform” for the next fiscal year.
The ruling Democratic Party in its election “Manifesto” called for a shift from “deductions”. It promised to abolish deductions for spouses and dependents from taxable incomes and introduce a child allowance. Also, the Government Tax Commission is leaning toward proposing abolition of the deduction for spouses, while putting off the abolition of the deductions for dependents.
The DPJ ‘Manifesto’ makes it clear that the deductions of taxable incomes for dependents will be abolished except for dependents who are high school and university students and elderly. Nevertheless, the Finance Ministry is calling for these special deductions to be abolished.
The ministry’s promise to pay “child allowances” means a tax increase for all households with dependent family members aged 69 and younger except households with dependent children up to junior high school age. It is completely wrong to count on mass tax increases for securing revenue sources in order to improve financial support for certain households.
The policy of shifting emphasis from “deductions” to “allowances” as means of improving people’s livelihoods will inadvertently force many people to pay more in taxes while lowering the already too low tax exempt limit.
The need is to move away from old policies
The Ministry of Economy, Trade and Industry is calling for the corporate effective tax rate to be further lowered. This shows that the DPJ-led government offers little change from the pro-big business policy of the former Liberal Democratic Party government even though the new government is called upon to force large corporations to shoulder more burdens to ensure revenue sources for improving people’s livelihoods.
Although the Hatoyama government’s budget plan reflects the needs of the public in certain aspects, it is not willing to put an end to the old policy of serving the interests of large corporations and to Japan’s subservience to the United States. The need now is for the new government to free itself from the old political framework that will ensure that tax revenues will be used to improve people’s livelihoods.
- Akahata, November 30, 2009
