No. 1280 Ruling Party has begun Debates on Taxation Reform
The ruling Liberal Democratic Party (LDP) commits in internal debates for the ‘taxation reform guidelines’ to be compiled in the year-end. The current fiscal crisis was triggered by the extraordinary malfunctioning of the tax scheme where the rule of ability payment does not work and the nation’s wealth is not fairly redistributed, though the Constitution duly requests fulfillment. The fiscal crisis stems from the taxing crisis.
RULES OF ABILITY PAYMENT AND REDISTIRUBTION OF WEALTH MUST BE MET PROPERLY
Social gaps are expanding
The largest annual income recorded in the country is estimated as 20.347 billion yen (incomes from dividend of 20.247 billion yen and compensation for director of 100 million yen), and the second largest is 10.977 billion yen (incomes from dividend of 10.577 billion yen and compensation for director of 400 million yen).
On the other hand, however, the relative poverty standard (the poverty line) for the year 2018 is calculated as 1.27 million yen of disposable income per person per annum. Every one of six people (15.7%), counting about 20 million people, lives below the poverty line. That means those of 14% of children, 27% of the elderly families, 56% of single, elderly women and 51.4% of families of mother with children live in poverty.
The working population produces a tremendous amount of wealth, but the treasure is gripped by a very thin stratum of big business and the rich. Affluence is not reallocated to working people and the poor struggling for today’s living costs.
The first step should be reduction of consumption tax rate
The government’s taxation arrangement panel and commercial media request a review on taxation on financial incomes: dividends and profits gained in stock deals are an unearned income, but the income tax rates on the said items are set as 1/3 of the rate levied on the earned income, and a half of the residential tax rate of local administration. These two represent injustice in the tax system of the country.
The income tax rates for rich individuals as well as corporates have been predominantly reduced for years. Beneficiaries are the rich and big businesses. Thus, the revenue from consumption tax has been used to make up the deficiency. Working people pay for that.
The government employs a cheap currency appreciation policy, while people fight huge price hikes, which is calculated as an increase by 80 thousand yen per household a year on the average. If the government is right in helping people’s livelihood, it should cut the consumption tax rate, as the step is the most effective. When thinking over the initial collection of this tax, we remember clearly that the government had explained to fill up shortfalls in the budgets for social services.
However, the arrangement has not been fulfilled: social services have been far left behind. Just one example; imposition of cash payment on the elderly over 75 years old after treatments in the hospitals: they must pay 20% of the real medical costs. The measure affects 3.7 million people.
The total cash payments at the hospitals across the country in 2019 account approximately 5.2 trillion yen: that means the elderly should enjoy free healthcare, if the ruling LDP should dispense the tax money to be spent on the doubled budgets for a military purpose (an increase by 5.5 trillion yen), which is the party’s planned decision.
Another way is true, too; Impose a 1% tax rate on the internal reserves of big businesses, which exceeds 516 trillion yen as of the end of fiscal 2021, and medical services will be free-of-charge.
The government’s responsibility lies in observing a rule, ‘to estimate expenditure and to regulate revenue’, which also represents a fiscal norm. The current fiscal debts come from the official policy to seek exoneration of big businesses and the rich who should pay higher taxes.
Current tax system violates Constitution
The constitution, providing that all people in the country could enjoy a healthy, cultural and minimally-guaranteed life, specifies that the tax system shall be supported by the ability payment rule so that revenue can be ready for public services and welfare. The current tax structure certainly violates the constitution.
格差拡大さらに
日本の年収の１位は２０３億４７００万円（配当収入２０２億４７００万円、役員報酬１億円）、２位は１０９億７７００万円（配当収入１０５億７７００万円、役員報酬４億円）と試算されている。
他方、２０１８年の相対的貧困基準（貧困線）は１人あたりの可処分所得１２７万円とされ、６人に１ 人（15・７％）、約２０００万人が貧困線以下にある。子どもの14％、高齢者世帯の27％、高齢女性単身の56％、母子世帯の51・４％が該当する。
勤労者は巨万の富をつくり出すが、その富はごく一部の大企業や富裕層に偏在し、勤労者や今日の生活に困る貧困層に配分されていない。
消費税減税こそ
政府税調やマスコミの注文は、「金融所得課税」の見直しで、配当金や株式売却益は不労所得だが、その所得税率は給与所得の３分の１、住民税率は２分の１で、不公平税制の象徴と言える。
また、個人所得税の最高税率も、法人所得税も、大幅に減税されてきた。恩恵は高額所得者と大企業である。その減税の穴埋めが、消費税で勤労国民に転嫁されてきた。
いま、円安政策などによる物価高で平均年８万円の負担増というが、家計を助けるには消費税減税が一番効果が大きい。そもそも、消費税は福祉財源充当が導入理由だった。
しかし、社会保障の後退は顕著だ。後期高齢者（75歳以上）の医療費窓口負担２割導入（対象者３７０万人）は、ほんの一例に過ぎない。
２０１９年の窓口負担は約５・２兆円であるが、自民党が目論んでいる軍事費２倍化(プラス５・５兆円)の全額を医療費に回せば負担ゼロにできる。また、大企業等の内部留保、５１６兆超円（21年度末）に１％課税するだけでも医療費をゼロにできる。「出るを量って、入りを制す」のが政府の責任であり、財政原則だ。財政赤字は、負担すべき大企業や富裕層を政府が免罪しているからだ。
現行税制は違憲
憲法が要請する税制は、全ての国民が健康で文化的な最低限度の生活ができるよう、公共の福祉を保障するために必要財源を応能負担原則に立って確保することにある。現状の税制は、憲法違反の疑いすらあるのだ。
英訳版↓
No. 1280 Ruling Party has begun Debates on Taxation Reform
The ruling Liberal Democratic Party (LDP) commits in internal debates for the ‘taxation reform guidelines’ to be compiled in the year-end. The current fiscal crisis was triggered by the extraordinary malfunctioning of the tax scheme where the rule of ability payment does not work and the nation’s wealth is not fairly redistributed, though the Constitution duly requests fulfillment. The fiscal crisis stems from the taxing crisis.
RULES OF ABILITY PAYMENT AND REDISTIRUBTION OF WEALTH MUST BE MET PROPERLY
Social gaps are expanding
The largest annual income recorded in the country is estimated as 20.347 billion yen (incomes from dividend of 20.247 billion yen and compensation for director of 100 million yen), and the second largest is 10.977 billion yen (incomes from dividend of 10.577 billion yen and compensation for director of 400 million yen).
On the other hand, however, the relative poverty standard (the poverty line) for the year 2018 is calculated as 1.27 million yen of disposable income per person per annum. Every one of six people (15.7%), counting about 20 million people, lives below the poverty line. That means those of 14% of children, 27% of the elderly families, 56% of single, elderly women and 51.4% of families of mother with children live in poverty.
The working population produces a tremendous amount of wealth, but the treasure is gripped by a very thin stratum of big business and the rich. Affluence is not reallocated to working people and the poor struggling for today’s living costs.
The first step should be reduction of consumption tax rate
The government’s taxation arrangement panel and commercial media request a review on taxation on financial incomes: dividends and profits gained in stock deals are an unearned income, but the income tax rates on the said items are set as 1/3 of the rate levied on the earned income, and a half of the residential tax rate of local administration. These two represent injustice in the tax system of the country.
The income tax rates for rich individuals as well as corporates have been predominantly reduced for years. Beneficiaries are the rich and big businesses. Thus, the revenue from consumption tax has been used to make up the deficiency. Working people pay for that.
The government employs a cheap currency appreciation policy, while people fight huge price hikes, which is calculated as an increase by 80 thousand yen per household a year on the average. If the government is right in helping people’s livelihood, it should cut the consumption tax rate, as the step is the most effective. When thinking over the initial collection of this tax, we remember clearly that the government had explained to fill up shortfalls in the budgets for social services.
However, the arrangement has not been fulfilled: social services have been far left behind. Just one example; imposition of cash payment on the elderly over 75 years old after treatments in the hospitals: they must pay 20% of the real medical costs. The measure affects 3.7 million people.
The total cash payments at the hospitals across the country in 2019 account approximately 5.2 trillion yen: that means the elderly should enjoy free healthcare, if the ruling LDP should dispense the tax money to be spent on the doubled budgets for a military purpose (an increase by 5.5 trillion yen), which is the party’s planned decision.
Another way is true, too; Impose a 1% tax rate on the internal reserves of big businesses, which exceeds 516 trillion yen as of the end of fiscal 2021, and medical services will be free-of-charge.
The government’s responsibility lies in observing a rule, ‘to estimate expenditure and to regulate revenue’, which also represents a fiscal norm. The current fiscal debts come from the official policy to seek exoneration of big businesses and the rich who should pay higher taxes.
Current tax system violates Constitution
The constitution, providing that all people in the country could enjoy a healthy, cultural and minimally-guaranteed life, specifies that the tax system shall be supported by the ability payment rule so that revenue can be ready for public services and welfare. The current tax structure certainly violates the constitution.
October 26, 2022