Japan Press Weekly

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2012 May 23 - 29 [FINANCE]

JCP Sasaki: ‘Consumption tax hike will benefit social welfare programs’ is a cheat

Japanese Communist Party lawmaker Sasaki Kensho on May 22 said that a consumption tax hike will severely harm people’s livelihoods and the national economy while an increase in tax revenues will not contribute to the improvement of social welfare programs.

At a meeting of the House of Representatives special committee on an “integrated reform” of social services and the tax system, Sasaki pointed out that the government intends to use 7 trillion yen out of 13.5 trillion yen in tax revenues gained from the planned consumption tax hike to cover national budget deficits and reduce corporate taxes.

Deputy Prime Minister Okada Katsuya admitted that part of the tax revenues from the consumption tax increase will be allocated to repayment of deficit-covering government bonds.

Sasaki criticized the government for making the phony claim that “all tax revenues from a higher consumption tax will be used to finance social programs.”

He also presented the fact that between 2000 and 2011, the monthly income of an elderly couple household decreased by 35,000 yen due to reduction in pension benefits, and the family income of salaried workers also decreased by 43,000 per month due to wage cuts.

Citing that Prime Minister Noda Yoshihiko in 2005 said that the 1997 consumption tax rate increase hurt Japan’s economy, Sasaki said, “When people are suffering from economic hardships, the government should not carry out measures which impose further hardships.”