April 21, 2012
Japanese Communist Party member of the House of Representatives Yoshii Hidekatsu criticized the government’s plan to reduce corporation taxes even further in order to attract foreign multinational corporations to invest in Japan as being totally ineffective in giving a boost to the economy.
In a debate at the economy, trade and industry committee of the Lower House on April 18, Yoshii pointed out that the plan is intended to give priority to big businesses by excessively depending on an increase in foreign demand. “There is no indication that the plan will bring positive results to the economy as a whole,” he said.
Yoshii quoted a report by the Organization for Economic Cooperation and Development (OECD) that competition among countries for corporation tax reductions will cause further damage to the world economy. He warned that the plan will only force nations, including Japan, into a vicious downward spiral of competing against each other in a race to the bottom.
The JCP lawmaker insisted that the government stop engaging in a competition with other nations to provide corporation tax breaks, withdraw its bill to increase the consumption tax rate, and change its policy to one boosting domestic demand as well as giving priority to local economic vitality and the interests of small- and medium-sized businesses.
Yoshii also pointed out that although all 47 prefectures granted corporate subsidies totaling 20 billion yen over the last decade, 23 major corporations pulled out or downsized their operations in Japan, causing thousands of workers to lose jobs.
Economy, Trade and Industry Minister Edano Yukio replied, “Regarding the matter whether corporation tax cuts have a positive ripple effect on the economy, we will consider the proper measures to be taken.”
In a debate at the economy, trade and industry committee of the Lower House on April 18, Yoshii pointed out that the plan is intended to give priority to big businesses by excessively depending on an increase in foreign demand. “There is no indication that the plan will bring positive results to the economy as a whole,” he said.
Yoshii quoted a report by the Organization for Economic Cooperation and Development (OECD) that competition among countries for corporation tax reductions will cause further damage to the world economy. He warned that the plan will only force nations, including Japan, into a vicious downward spiral of competing against each other in a race to the bottom.
The JCP lawmaker insisted that the government stop engaging in a competition with other nations to provide corporation tax breaks, withdraw its bill to increase the consumption tax rate, and change its policy to one boosting domestic demand as well as giving priority to local economic vitality and the interests of small- and medium-sized businesses.
Yoshii also pointed out that although all 47 prefectures granted corporate subsidies totaling 20 billion yen over the last decade, 23 major corporations pulled out or downsized their operations in Japan, causing thousands of workers to lose jobs.
Economy, Trade and Industry Minister Edano Yukio replied, “Regarding the matter whether corporation tax cuts have a positive ripple effect on the economy, we will consider the proper measures to be taken.”
