~ Huge tax increase of 10 trillion yen, national debt reduction of 7 trillion yen: Is it ok to continue being mocked like this? ~
As a result of the Liberal Democratic Party's victory in the first single-seat constituency elections recently, the consumption tax will be raised to 5%. In addition, the self-pay rate for medical expenses will be raised from 10% to 20%. On the other hand, the special tax reduction measures will be abolished.
The increase in government revenue from these tax increases is expected to amount to 10 trillion yen. 10 trillion yen may not seem like much, but the national budget of the Japanese government is 70 trillion yen, so the tax increase would amount to 100,000 yen per person, or 400,000 yen for a family of four.
Even though such a huge tax increase has been implemented, which is so tyrannical that it would not be surprising if riots were to break out, the Japanese people do not seem to mind at all. It is hard to imagine that most Japanese people think that this is a good thing. The truth is that this fact is probably hardly recognized at all.
I think that it is inevitable in a sense for Japan, which has the worst fiscal deficit among developed countries, to raise taxes to some extent. Canada, where I lived for two years from 1992, had the worst accumulated deficit among developed countries at the time. Jean Gretien, who became prime minister in the general election of September 1994, raised taxes and overcame this situation. However, the tax increases he implemented are fundamentally different from what the Japanese government is currently trying to implement. This is because:
1:3 rule
This is clearly seen in whether or not to implement the "1:3 rule." The 1:3 rule means that for every 1 tax increase, 3 spending cuts are made. In the case of Japan's recent tax increase, taxes were increased by 10 trillion yen, so spending cuts would be 30 trillion yen. This would mean that the government would have 40 trillion yen in deficit reduction funds. The Canadian government has been doing this for three years, and in that short period of time, it has transformed its fiscal position from being the worst among developed countries to one that could be called the "best."
Looking at Japan, the budget is still a mess, with only 7 trillion yen in reductions in national debt. This is like giving a magic mallet to bureaucrats and politicians. The reason for increasing the number of LDP members in the last general election and ultimately accepting the consumption tax hike to 5% was not supposed to be for something like this.
Japanese people are weak when it comes to the government. But now is the age of democracy. Japanese people have a right to be more angry.
Now let's all shout out loud.
- Strict adherence to the 1:3 rule
- Achieving zero-based budgeting
And if the LDP did not do these things, they should clearly show results in the next election. In the 1992 Canadian general election, the Progressive Conservative Party, which had a majority at the time, lost its seats to just two because it did not deliver on its campaign promises. The single-seat constituency system is a system that makes it possible to say things like this.
Of course, to achieve this state of affairs, a political party is needed to take over. Unfortunately, neither the Shinshinto, nor the Democratic Party, nor the Haneda New Party have put forward clear policies in this sense. These opposition parties should form shadow cabinets and promote these policies as soon as possible.
A politician is not someone who panders to the masses. He is someone who speaks to the masses about his ideals and persuades them. This is the kind of attitude that is desperately needed now.