February 25, 2022

Japanese Communist Party Chair Shii Kazuo on February 24 at a press conference in the Diet building published a proposal calling for taxing large corporations’ huge internal reserves for the purpose of realizing substantial pay hikes, promoting “green investments”, and increasing minimum hourly wages to 1,500 yen.

Shii pointed out that for eight years from 2012, under the “Abenomics” economic policy carried out by the Liberal Democratic-Komei coalition government, large companies with a capital of more than one billion yen increased their internal reserves by 130 trillion yen to 466 trillion yen. He went on to point out that during the same period, average workers’ annual income was reduced by 220,000 yen.

Shii said that under the JCP proposal, corporate expenditures for domestic capital investments and pay raises are regarded as tax-deductible with the aim of contributing to sustainable economic development through such means as the promotion of green investments that support environmentally-friendly companies and projects.

Shii stressed that the JCP proposal will bring in an addition of 10 trillion yen in government tax revenues. He said that under the proposal, the JCP demands that this money be used to realize a nationwide minimum hourly wage of 1,500 yen and to support small- and medium-sized enterprises’ efforts to raise wages.

Shii said, “The party’s proposal will not only promise better wages to workers at companies big and small but also facilitate ‘green investments’. We will work hard to have our proposal discussed and approved in the Diet.”