What Business Owners Can Do in the Age of Heavy Taxation
World Teacher's Message 252


The Question:

Earlier in the lecture you told us that left-leaning businesses fail. As you know, due to state regulations, companies have to join social insurance schemes and pay the fees. How can businessmen go about trying to solve a problem that exceeds the powers of individual companies?

(Lecture given 5th June 2010 at Happy Science Sohonzan Shoshinkan)


I sometimes speak about a ‘hidden tax’. The government refrains from calling it a tax because propriety poses a limit to the amount they can tax the people. That’s why the state and local governments use the word ‘insurance’ to collect money from private companies.

If we include these fees we can see that Japan’s taxes are very heavy. In fact, it’s climbing close to the highest in the world. People don’t realize how high the taxes are because they don’t look at the ‘hidden taxes’ such as senior pension and insurance schemes. If we include these hidden taxes, Japan’s taxes are close to the highest in the world.

The bureaucrats and politicians who came up with this idea are indeed clever people, but they’ll end up having to pay the price for deceiving the people. If they are not made to take responsibility in this lifetime, they will surely get ‘the stick’ in the afterlife.

Companies can pay these fees if they have money to spare, but when times are tough they start having to use internal reserve. In the end, they fail to meet the expected fees. And the same goes for individuals.

As a result, many people, especially of the younger generation, try to avoid the procedure of getting fees deducted from their payroll. People are skeptical about the whole insurance system.

The elderly generation are sorry for the younger one because the latter can’t get pensions even after having paid for it during their workforce years. Of course, however, this does not apply to all people.


Companies Need a Self-Defense Mechanism

If the company shows steady growth people can lend some of their money to the company in exchange for being looked after post-retirement. But if over time the company ceases to exist, this method will cease to work.

When the company plans a merger the money you lend to the company will become untraceable.

That’s why we need to come up with a self-defense scheme. It’s all very fine to place your trust upon insurance from the company, society or country; but we need an alternate method of survival in case that system falls apart.

I also don’t like the idea of getting fees deducted from my payroll. I’d much prefer to secure my own savings. Since everyone is in a different position and environment, it is impossible to establish a ‘one-size-fits-all’ system.

One cannot spend more than they earn. That means people with low incomes must stop wasteful spending and start saving because ‘many a mickle make a muckle’.

Sometimes the government pressures companies by threatening legal action if they don’t follow the rules, but great business managers fight against these forces. The law is subject to interpretation, so business owners must resist those who use the law against them.

When the National Tax Agency begins to see the tax revenue decrease, they will try all sorts of things to get taxes. Business managers are a rare breed of people who have the chance to take a stand against the NTA.


Use Wisdom and Logic

Business managers must use logic as their weapon, and create the company’s moral fiber.

When the law was established they assumed that all enterprises would react the same way, but, in reality, it’s different. Managers must hone their skills of persuasion for survival to convince the law, “this is how WE roll”.

Managers need creative skills and wisdom to construct their own logic. Unfortunately, individuals and private companies are often powerless against law and state decisions, which is one of the reason why Happy Science has a political party in Japan.

Without a political party, we don’t have the power to put our ideas into practice, nor can we introduce new bills. A bill cannot be enacted unless you have at least 20 Diet members in the National Diet. That’s why we have ventured into political activities. Thus, some external circumstances are beyond individual control.


Dangers of Expanding Social Welfare

I warned in my book “How to Create a Prosperous Nation” that if someone like Hitler appears, it’s all over. That’s why I’ve been saying that we must be afraid of countries that try to expand social welfare. While the government may promise a fulfilling pension fund, if the source of wealth disappears what will happen? The government will suddenly want people to die at 65 or 70.

There are old legends of the Ubasute Mountain, an uninhabited mountain where an elderly relative was carried and left there to die. A new sort of Ubasute Mountain may be created for the government’s convenience.

If the government runs out of funds, we can expect them to come up with a strategy like this. They cannot protect the people unless they have a direct connection with business elites and billionaires. Happy Science has a Party because we know that there are areas that cannot be protected by religion alone.

If we gain entry into politics, we can change absurd laws and make practical advances in response to the voices of those in need.

While I think it is possible that many companies will perish under the current system, the least we can do as managers is to setup a list of priorities (or things we can cut) and cut the things that aren’t urgent.

If you can’t pay your employees you can’t pay for anything else. You have to cut the unnecessary things and bring it all down to the minimal level. You have to forget about your reputation.


Increasing Added Value

Another thing is, try to increase the total amount of added value while trying to spend as little money as possible.

For example, the ideal management can be likened to a brand that doesn’t need a factory. In general, things that require high-cost manufacturing methods or high-cost supplies are more vulnerable under tough financial conditions.

You must create jobs and products with high added value without raising the costs. If you prioritize getting supplies, and only cover the costs when they sell, you will be more vulnerable under poor economic conditions.

Rather, during poor economic conditions there will be less risk if you make products that can get a pre-order. Manufacturing products or providing services with that foresight will be a great advantage.

The Laws of Creation points the way to saving Japan’s economy and ushering in a period of long economic prosperity.

What I want to say is, use your creativity and create things that no one’s ever seen before. Make things that can only be done in Japan, and things that can only be made in your company.

While I was coming here [to the venue], I saw an advertisement for sweets that used certain red beans from a certain place in Hokkaido. These companies are trying all sorts of things and working hard.

I couldn’t quite see why it had to be made from those particular Hokkaido red beans, but what they’re doing is providing an exclusive experience and taste through something that other people can’t get their hands on. The whole company would unite in this aim, and each individual does his or her part in the job.

If you create something that didn’t previously exist in the world, that will translate itself into money. Please focus on developing that power.


Prioritizing and Stoicism

You shouldn’t pay all sorts of fees just to protect your reputation. During a crisis, you must make a priority list and decide what you must pay first. If there are somethings that don’t require payment, you must cut these out. Companies that don’t do this will go downhill.

You need wisdom and stoicism to do so.

What’s important is ‘how you think’. The municipal office will say “this is the system so you must follow suit”, but these systems are just brainless one-size-fits-all formulae. It is a problem that managers must fight against.

We’ve entered an age where wisdom is imperative, so please watch out. The government will suck money from anywhere and everywhere, so you must say on guard. Being too nice is not good.

Cut things that must be cut, and if the company starts to grow and prosper through genuine methods, only then should you be entitled to pay taxes.

I must add that lawful tax avoidance is fine, but illegal tax avoidance is not good. Pay what must be paid. But before you do, you must use money on any necessary facility and equipment investment.

The tax management in this country is too sloppy. Under these circumstances, private company managers must not become nice people.

What Business Owners Can Do in the Age of Heavy Taxation
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