consumption tax rate is scheduled to rise to 10% in coming October. It has an
extremely regressive nature that impacts cruelly on people’s life. A basic function
of taxing lies in collecting taxes from the rich and big businesses in
accordance with their ability to pay so that social disparities may be rectified.
This is a principal role of taxation. Let’s reflect in the coming elections of
the House of Councilors people’s will to cancel another surge of the tax.
WIN VICTORY IN THE ELECTIONS TO MAKE GOVERNMENT GIVE UP TAX HIKE!
most controversial aspect of consumption tax is its regressive nature. It is a deadly
flaw and cannot be altered by any means.
tax was introduced in April, 1989, and this year commemorates its 30th
anniversary. Governments and ruling parties have told repeatedly that the
consumption tax serves as a financial source for public services and that it
would prevent budget deficits from impacting on coming generations, while strong
popular movements have been staged since a time when the sales tax was contested.
Under these circumstances the government forced to introduce the consumption
look at tax revenues. In 1989 the total revenue from taxes amounted 55 trillion
Yen, while during a period of 30 years from 1990 through 2018 the average sum
of tax revenue was approximately 50 trillion Yen. The incoming amount has been declining
unquestionably, though economic performance affects on the figure.
for the corporate tax, it was 42% before the introduction of a consumption tax
and has decreased year after year down to 23.2% today. With regard to the
income tax, the highest rank was 70% in 1986, but today it is 45%.
a 30-year period the governments have earned 372 trillion Yen from the
consumption tax, while the returns declined from the source of three kinds of
corporate tax, accounting 291 trillion Yen. A total of reduced earnings of
income tax and residents’ tax have reached 270 trillion Yen. That means the revenue
from consumption tax has been used to fill the reduced sum that must have been
collected from big businesses and the rich.
taxation of the nation has lost power of procurement. We live today in a crisis
of a nation which relies on taxation.
Rule – Those who are able to pay should pay
look at breakdowns of tax revenue.
1989 when the consumption tax was introduced;
Income tax 21.4 trillion Yen 38.9%
Corporate taxes 19 trillion Yen 34.5%
means the two tax sources occupied 73.4% of the total revenue.
2017 the rate dropped to 52.7%, while the consumption tax earnings held nearly
estimate says the consumption tax will be the biggest tax resource, exceeding
the income tax, when the rate of the former is raised to 10%.
constitution of Japan
demands taxation to comply with a rule that those who are capable to pay should
pay, proclaiming fair taxation. It embodies the social right, an ideology to
live in peace. The idea is one of the crucial bases that the contemporary
constitution requests. The consumption tax is levied on every one of people. And
therefore, it violates the constitution, if the government attempts to give
this tax a status of a major revenue source.
discussing another surge of the consumption tax, the government should totally abolish
the special taxation measures for a time being, and return the rates of income tax and corporate taxes to the levels
which were implemented before the consumption tax was collected. And then, a
sincere review should be made on the overall taxation.
tasks are left unanswered in the field of taxation amid expanding income gaps
and growing dependence on financial transactions in the economy. It is
necessary for the government to newly introduce a tax for the rich and a financial
transaction tax, and other steps. It is also indispensable to restrict tax
short, good solutions depend on people’s opinions and a political resolve. Is
it all right for the consumption tax to go up? Serious discussions are needed.
The scheduled House of Councilors election is a chance for people to show their