General Secretary talks on the LDP's emergency economic measures: "They lack the drastic reduction of income tax."
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Under the current recession Rengo's General Secretary Mr. Sasamori announced his view on the LDP's emergency economic counterplan published on 21 October. He pointed out that the measures lacked the reduction of income tax and did not meet the people's desire for economic recovery and stable living. And the following is the summary of his announcement.
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The LDP's counterplan consists of 4 major points: the promotion of deregulation processes, the counterplan to housing and land problem, the counterplan for medium and small-sized enterprises and the tax reform. However, it lacks the drastic reduction of income tax, which I believe is the most important to ease the recent economic recession. It is not what the people is longing for economic recovery and stable living.
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Business is now terribly declining. The special tax reduction was terminated following the rise of the consumer tax rate in April this year and, moreover, the burden of medical expenses on an individual patient was also raised. Consequently, the government imposes 900 billion yen on the people. The current recession is mainly caused by the inactive consumption due to such reforms. Therefore, the people's burden should be lightened for the purpose of increasing individual consumption and the economic counterplan should have included the continuation of the 200 billion-yen's tax reduction.
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The LDP's counterplan, which proposes the reduction of corporation tax and the abolition of securities dealing tax, gives the highest priority to corporations and ignores the burden of the working people. Corporation tax should be reduced on the assumption that it is applied to a wider range and the abolition of securities dealing tax should be accompanied the reinforcement of capital gain tax. The land policy, such as the abolition or the freezing of land value tax goes against the time. These reforms will, under the name of the emergency counterplan, distort the tax system to treat large-income earners and companies as they are expecting.
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The counterplan also discusses supplementary revised budget for the Uruguay Round and the use of zero government loans, which go against the financial structural reform and thus should be dropped. And the expansion of the scope for temp-staff personnel is also proposed in this plan as part of deregulation, but this only makes the working people more anxious and so Rengo is strongly against it.
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The LDP denies the special tax reduction of 200 billion yen for the reason of proceeding with the financial structural reform. However, if the economic recession continues, it is obvious that the reform itself will fail. Stressing that the 200 billion yen tax reduction is the most useful to activate individual consumption and to contribute to the improvement of the people's life, Rengo will make its best effort to actualize the tax reduction.
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