February 4, 2014

Japanese Communist Party member of the House of Representatives Sasaki Kensho on February 3 at a House Budget Committee meeting criticized the government for imposing heavy burdens on the general public while cutting taxes for large corporations.

The Abe administration is planning to abolish in April the special corporate tax for reconstruction in the areas hit by the 2011 disaster, a year ahead of schedule. Meanwhile, the special reconstruction income tax on the public is to be continued until the fiscal year 2037.

Sasaki noted that the total amount of the special tax to be imposed on individuals will reach 8 trillion yen in the 25 years between 2013 and 2037, while that of tax reduction for corporations will amount to 20 trillion yen in the same period of time. “Although the prime minister claims that everybody should share in the burden of reconstruction, the government plan is far from being fair and impartial,” he stressed.

The JCP lawmaker also pointed out that the corporate tax break will not necessarily lead to workers’ wage hikes, showing the result of a survey of company owners. According to that survey, 30% of respondents said they will set aside the amount of the tax cut for internal reserves, while only 9% responded they will use the money to raise regular wages.

Finance Minister Aso Taro replied, “Even if corporate profits increase, it would not directly result in pay increases.”

In wrapping up his interpellation, Sasaki urged the government to halt the consumption tax hike scheduled for April, citing the fact that the average salary for workers has been declining for 18 months in a row amid consumer price rises.


Past related article:
> PM must retract decision to increase consumption tax to 8%: Shii [October 2, 2013]