2009 August 15 - 25 [
POLITICS]
This is pro-business politics as usual, ignoring people’s well-being
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August 23, 2009
One of the Japanese Communist Party’s main slogans in the election campaign is, “Stop serving the interests of large corporations and financial circles and implement policies to defend people’s lives and livelihoods.”
How does pro-big business politics actually work? Here is an example.
At the Tokyo headquarters of Toyota Motor Corporation in the Suidobashi district, Ijichi Takahiko, managing director, on August 4 announced the automaker’s earnings report for the April-June period. He stated:
“Toyota's new Prius gas-electric hybrid has been a hot selling item. Thanks to the government tax breaks and subsidies for eco-friendly products, we are increasing our domestic sales forecast for the current fiscal year (ending on March 31, 2010) by 100,000.”
This is clearly a result of the lobbying by the Japan Business Federation (Nippon Keidanren) that demanded in February that the government establish and even expand measures to encourage consumers to buy hybrid cars, flat-panel television sets, and other supposedly energy-saving products.
The government led by Prime Minister Aso Taro responded to the corporate demand giving consumers tax breaks and subsidies of up to 190,000 yen for the purchase of a Toyota Prius.
Do not forget that tax revenues from ordinary people are being used to give these tax breaks and subsidies.
Such a corporate demand for tax breaks is nothing new.
In 1997, then Nippon Keidanren Chairman Toyoda Shoichiro, who was also chairman of Toyota Corp., publicly stated, “We demand a substantial reduction of the effective corporate tax rates.”
The government responded to this by lowering the corporate tax rate to 30 percent from 37.5 percent in fiscal 1997.
In 2002, Nippon Keidanren led by Chairman Okuda Hiroshi (Toyota Corp. chairman at the time) gave large corporations, including Toyota, larger tax cuts for research and development efforts.
These two major tax breaks alone enabled Toyota to save 1.8 trillion yen in the five years to fiscal 2007 (ending March 31, 2008).
Even though Toyota is enjoying preferential treatment regarding tax payments, it has continued to “throw away” workers. It has forced more than 7,000 fixed-term contract workers out of work since January 2008.
Nationally, the unemployment rate rose to 5.4 percent in June, up 0.2 points from the previous month.
The Toyota Group’s donations to “two major” parties
Toyota Group is the largest donor for the Liberal Democratic Party. Many Toyota affiliates are also contributing money to the Democratic Party of Japan.
The following contributors’ list shows the corporate giant’s desire to support the LDP and the DPJ as the “two major parties” that serve the interests of Toyota and other large corporations.
Some of the contributions by Toyota Motor and other Toyota Group companies to ‘two major parties’ in 2007
Liberal Democratic Party received money from:
Toyota Motor Corporation 64.40 million yen
Denso 12.00 million yen
AISIN 3.30 million yen
Toyota Industries Corporation 3.00 million yen
Toyota Tsusho Corporation 3.00 million yen
Aichi Steel 1.50 million yen
Toyota Auto Body 1.00 million yen
Toyota Boshoku 1.00 million yen
Futaba Industrial 1.18 million yen
Democratic Party of Japan received money from:
Denso 6.00 million yen
Toyota Industries Corporation 2.50 million yen
AISIN 2.20 million yen
Toyota Tsusho Corporation 2.00 million yen
Daihatsu Motor 1.50 million yen
Toyota Auto Body 1.00 million yen
Hino Motors 0.50 million yen
Toyoda Gosei 0.50 million yen
JCP has demanded that Toyota secure jobs for all its workers
By contrast, the Japanese Communist Party has not only refused to accept corporate donations but has also stood firm against expansion of the use of a contingent workforce.
JCP Chair Shii Kazuo met with corporate executives of Toyota and Canon as well as the Japan Business Federation (Nippon Keidanren) and demanded that the large corporations stop their mass layoffs of temporary workers.
– Akahata Sunday Edition, August 23, 2009
