Consumer tax becomes a main election issue

My opinion of this week(532)

Prime Minister Shinzo Abe expressed at a TV news show that he has never　denied any possibility of rising consumer tax in near future. Several top executive members of Liberal Democratic Party criticized Abe's comment that he should have never mentioned it for rising consumer tax　is another critical minus issues in coming election for ruling front.

Whether they worry about the effect or not , it is very clear that Abe　Cabinet and ruling front will rise consumer tax in near future when　introduction of new pension plan is planned. Most Japanese people know　that it is very possible for the Government to rise consumer tax sooner　or later when time comes. People now worry about the pension recording　system itself but they have another concern about how the current pension　system will be revised . They know how those revision will be financed　so that new system will really work as planned.

Most people know the fact it is possible that consumer tax will be　raised by 3% or 5% to finance the new pension plan.

As a matter of fact, this issue was debated by two top leaders a week　ago. Prime Minister Abe asked Ichirou Ozawa, President of Democratic　Party of Japan how they can make money to fund new pension plan as　they proposed before without rising consumer tax. Ozawa answered to　Abe that the new Government when DPJ would be in power can create　fund without rising consumer tax by cutting administrative cost
significantly. Abe criticized Ozawa that such plan is not practical　at all.

Abe must have indicated to say that the introduction of new pension　scheme is possible only by rising consumer tax as they have already　indicated. So it does not make sense for LDP leaders to say they should avoid this argument about rise of consumer tax at this summer　election.

I think it is fine for Prime Minister Abe to argue this point in　this election in connection with pension issues. Main concerns at　this moment is about recording of pension plan but this issue will　be extend to basic revision of total plan at the next stage. And　the issue will be discussed with the necessity of rise of consumer
tax sooner or later as to a necessary fund to support the plan.

DPJ proposed a new plan which involves no increase of consumer　tax. Many people of Japan are not quite sure whether or not　their plan are practical. But it is fine if the plan really works　as DPJ proposed. People must look forward to hearing their plan more　in detail in coming election campaign. The party should explain the
plan to people in more concrete way.

I just don't understand why LDP tries to avoid the argument in this　election. It is not the matter in the long run but the issue is the one at near hand.

2007/7/7
Tadashi HAYASE