December 17, 1999

Kiyoshi SASAMORI
General Secretary
Japanese Trade Union Confederation (JTUC-RENGO)

The outline of the tax system revision determined by the LDP gives the priority to the political consideration for enterprises and economy as a whole. Thus, it contains policy tax cuts, including the tax concessions for the fixed-contribution pension. However, the proposal of the Tax Commission is limited to indicating problems concerning income tax, tax on the pension and consumption tax. Both the outline and the proposal do not meet the expectation of the people, postponing a necessary reform to the fair tax system.

Rengo has requested for the reform of the income tax to lighten the burden on the low and middle-income earners and also for the fair tax system through total taxing. Rengo opposes the tax revision aiming at shifting to the flat tax system that ignores the function of the tax to maintain the social cohesion.

Such tax measures proposed by the government are not grounded the role of both public and private pensions and the relationship between the provision of social security and tax deduction. It is now necessary to clarify the principle of social security so that it contributes to the equality and fairness to stabilize the life of the people.

Rengo strongly insists that the government should draw up the total vision on social security centered on pension, care and medical services at the earliest date with active participation of the people. Furthermore, Rengo is aiming at realizing the total taxing and the taxpayer numbering that are not contained in the proposal of the TaxCommission.