Japan Press Weekly

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2016 June 1 - 7 [POLITICS]

Shii: stop imposing on people choice between higher consumption tax and lowered welfare services

Japanese Communist Party Chair Shii Kazuo on June 2 at a press conference at the JCP head office said that it is unacceptable for the government to use increased social welfare services as an excuse to increase the consumption tax rate.

He made this remark in rebuttal to an argument that the Abe government’s decision to delay the planned consumption tax hike to 10% for 2.5 years will lead to shortages in the budget for improving social welfare services.

Shii pointed out that financial resources needed for the improvement of welfare programs can be secured without relying on the consumption tax revenues. He proposed that preferential treatment to large corporations and preferential taxation of high-income earners with income above 100 million yen be stopped. He also demanded restrictions on the use of tax havens that allow tax avoidance altogether.

The JCP chair said that the “Abenomics” economic policies contributed to swelling their profits of large companies by reducing their tax burdens and labor costs which include their share of social insurance contributions, while imposing heavier financial burdens on the general public.

Shii noted that due to the consumption tax increase to 8% and “Abenomics” increasing social inequalities and poverty and destroying people’s livelihoods, personal spending have shown negative figures for two consecutive years for the first time since the end of WWII.

Shii stressed that the need is to change the pro-business government to a people-oriented one and to put an end to the government’s financial policies that rely on the consumption tax.

Past related articles:
> Abe should acknowledge failure of ‘Abenomics’ and cancel consumption tax hike plan [March 25, 2016]
> Abenomics brings about zero GDP [February 17, 2015]
> Abenomics & sales tax hike deal double punch to general public [August 31, 2014]