Response to the Press Conference on the Postponed Tax Increase and Diet Dissolution
Today, Prime Minister Abe announced at a press conference that the increase in the Consumption Tax to 10% planned for next October has been postponed, and that he was dissolving the House of Representatives. However, while the tax increase may be delayed, when it does eventually arrive there is no way to avoid it causing a major slump in consumer spending, and serious damage to the entire Japanese economy.
We see people claiming that a tax increase is necessary in light of Japan’s difficult financial situation, but it is clear that the failure of Abenomics is found in this increase in Consumption Tax, which is the underlying cause keeping the economy down. If we are to hope for financial restructuring, we need to reduce the ratio of our national debt in relation to our GDP through economic growth, not increased taxation: we need to work on effective growth strategies such as major reductions in the Consumption Tax, Corporate Tax, and other taxes.
What we need to revitalize the Japanese economy is not a postponement of tax increases, but reduced taxes. If we consider that personal consumption accounts for around 60% of the GDP, then we should not only forget about raising Consumption Tax again, but make the decision to drop it to 5% if we want to buoy up Japan’s economy through revitalizing consumption.
The Happiness Realization Party believes that low-tax, small government rather than high-tax, big government is what our country’s future needs. We are committed to the belief that we need to wean ourselves off statist political methods and that a political choice that maximizes the freedom of people in Japan will make the country prosper. As the party responsible for the future, the Happiness Realization Party will strive to make Japan a “major freedom power.”
Happiness Realization Party