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| September 27, 2011 |
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| Tax Increase for Reconstruction from Natural Disaster |
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The government focuses on the financial aspect of reconstruction efforts from the unprecedented natural disaster which hit northeastern Japan March 11. A colossal amount of money is needed. Disaster-hit residents have lost workplaces to survive, forced to live as refugees. Under these circumstances, responsibilities and causes of the crisis at the Fukushima nuclear power plant remain unclear: persecution and investigation efforts are not made properly. The government is not ready to make drastic revisions of the laws to support victims in the better way. What measures does the government keep in mind to fix funds for recovery and reconstruction from the disaster?
OBJECTION - HIGHER PRIORITY ON BUSINESS THAN ON PEOPLE'S LIFE
The nation's debts count approximately 9 trillion Yen in total. The natural disaster occurred in the midst of financial bankruptcy on both levels of the central and local governments. How should reconstruction funds be yielded? One estimate assumes that the government should allocate in total 19 trillion Yen in coming five years. It has appropriated in total 6 trillion Yen in the second round of supplementary budget arrangement for the purpose, but another 16 trillion Yen will be needed, including budgets to make up a loss to cover pensions (2.5 trillion Yen for appropriation) and to compensate victims of B-type hepatitis (700 billion Yen).
Government bonds will fill shortage. The Noda government expresses 'reconstruction costs should be shouldered by the current generations', indicating that it will raise taxes.
Under deflation, however, a tax hike policy aggravates economic performance to shrink tax revenues. Many politicians object such a measure. Proposals have been raised lately to avoid wastes: a review of the Manifesto of the Democratic Party of Japan (DPJ), including childcare allowances, a budget cut for wage payments to public workers and sales of stocks of postal industries owned by the government which total 6.4 trillion Yen.
Some firmly advocate a growth strategy; a policy to start new industries, taking advantage of experiences of the disaster, to rebuild national economy. They maintain that the state will have bigger tax revenues to shrink hike rates. An extreme proposal is voiced that the Bank of Japan should owe total government bonds, which is not allowed in the current framework.
Where is DPJ's Pledge - People's Life First?
A next step is unclear: the government presents a reform package in which taxes and social services are combined together, or in other words, a consumption tax rate may be surged, while public services may be cut. People have deep distrust in the nation's politics. What is obvious is that the government will overcome 'emergency' at the risk of people.
Focal points of the discussions are: an increase of income tax rate - a 10% rise for five consecutive years (or 5% for ten years) and a decrease of the corporate tax rate - 5%, and then a temporary rise by 4.2% for three years. The idea totally favors business circle. The DPJ won the general elections in 2009 with a pledge, People's Life First, which replaced the history-long reign of the Liberal Democratic Party. Where has gone the pledge?
We must not forget a fact that the Fukushima crisis has not ended yet and its recovery blueprint is uncertain; residents cannot return home as the region is contaminated by radiation, feeling uneasy and fearing radioactive effects. Debris is piled up, residences are not yet rebuilt and workplaces are lost to produce 70 thousand unemployed people - these are realities.
Restoration means to reconstruct livelihood of inhabitants in the affected areas. The government, however, is not ready to revise the existing laws, like Rescue Act from Natural Disaster (1947) and Act to Help Victims to Rebuild Livelihood (1998).
Is the government sincerely to assist the disaster-hit people and help the region? Young people are drained from towns and villages, leaving senior citizens behind at home. That means the northeastern region is omitted from the reconstruction plan, doesn't it?
Self-determination be guaranteed
Prosecution has not been made for responsibility of the nuclear accident. Right investigation has not been made to clarify causes. Tokyo Electric Power Co. (TEPCO), the party to compensate damages, arrogantly demands victims to present 'certificates of damages' and disdainfully plans to heighten electricity rate to survive itself. The company's impudence is a good lesson to victims when they should be stronger.
In the process of damage compensation the right of self-determination must be respected on the side of disaster-hit people: their dire requirements must be treated rightly. They want to live like a human being. Reconstruction money should be used for them. Tax money must be used to support every one of the victims to rebuild their lives.
The natural disaster and subsequent nuclear crisis tell us to quit a growth strategy, or a myth of economic prosperity, as well as to restore communities in which inhabitants are taken care of properly. The catastrophe requests us to change a way of thinking. The New Socialist Party of Japan objects the government's carefree policy to hike tax rates to shift responsibilities on to people.
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