Kan administration has been trying to introduce a “devilish taxation system” tax increase.

It is the Kan administration that has been trying all out to introduce a so-called”devilish taxation system”, to increase consumption. On June 2, 2011 the “concentration review meeting” (Prime Minister Naoto Kan, the chairperson) which considers an integrated reform of social security and taxation was held, and the reform bill includes boosting the consumption tax gradually to 10% by fiscal year 2015. Moreover, to increase taxes as a source of revitalization revenue is also planned at “a revitalization concept meeting” (Chairperson, Makoto Iokibe). The consumption tax has also been examined as a target for a tax increase, and income tax and corporation tax increases are being reviewed to be limited to social security purposes.
Moreover, on June 8th, 2011 even the IMF (International Monetary Fund) proposed that
Japan boost its consumption tax to 7~8% in 2012 and blew a following wind to a tax
increase.

If the government bill proceeds as is, as measures for Recovery and Reconstruction, the corporation tax and/or income tax will be increased. Additionally, consumption tax will be increased for the continuation of our social security system. These are just “tax increase rushes.”

If taxes are increased, more people will commit suicide.

However, a tax increase will cause the worst result of aggravation of depression, an increase in suicides, and a fall of tax revenues. If taxes are increased at this time, when things cannot be sold due to lack of demand, restructuring and bankruptcy will increase and suicides will also increase in number. If that happens, naturally tax revenues will decrease. If tax revenues decrease, the source of revenue for social security and Recovery and Reconstruction will also be lost, and no desired end can be attained. After the increase in the consumption tax in 1997, we should have realized this by now.

What should be done is the opposite of the government policy! If sources of revenue for social welfare and Recovery and Reconstruction are required, it is necessary to increase tax revenues. For increasing tax revenues, companies must make profits, and for that purpose, a tax reduction and increasing public spending are needed. Then, a virtuous circle of (1) recovery of corporate performance, (2) reduction of suicides and (3) increase of tax revenues is more likely to be produced.

More than 30,000 suicides each year, exceeding the 20,000 dead and missing in the Great East Japan Earthquake have occurred under the Democratic Party Administration which replaced the LDP government and campaigned with the slogan “we will protect our people’s lives”. If fundamental taxes, such as income tax, corporation tax, and consumption tax are increased one by one, Japan will surely become an unprecedented suicide country. We should not allow any more tax increases.