Japan Press Weekly

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2008 November 5 - 11 [ECONOMY]

Aso’s economic package will only discourage people from spending money: JCP Sasaki

Japanese Communist Party member of the House of Representatives Sasaki Kensho said that the Aso Cabinet’s recent proposal of measures aimed at stimulating the economy will only pour cold water on the household economy.

Sasaki made the statement on November 4 at the House of Representatives Financial Committee meeting to criticize Prime Minister Aso Taro for proposing a plan that includes a one-time distribution of money and a consumption tax increase in three years.

He pointed out that since the first Koizumi Cabinet was formed in 2001, a total of 1.27 trillion yen has been added in tax burdens on the people, or 400,000 yen on each family of four every year.

He said that if the consumption tax rate is raised to 15 percent from the present five percent, it will amount to forcing everyone to pay 100,000 yen more in this regressive tax each year.

Pointing out that the government estimates that under the plan, the total amount of tax money used for this one-time cash distribution will be two trillion yen and that a family of four will receive 60,000 yen, Sasaki stressed that the plan will not serve as a stimulus package. “The government will force each household to pay an additional 400,000 yen in tax while providing a one-time cash payout of 60,000 yen. This means that everyone will be forced to pay an additional 800,000 yen in three years.” he said.

“The need now is to reduce burdens on households so that people can afford to spend more to stimulate the economy,” Sasaki said.