Of course the smart and logical thing to do would be to let the taxes expire or lower them somewhat to give people some relief and to spur economic activity. But, as we all know, no politician anywhere will ever agree to the elimination of a revenue source, especially in Japan where a docile populace seems to have made “No pain, no gain” the national motto.
Finance Minister Fukushiro Nukaga issued a statement Wednesday stressing the importance of the bill’s passage before the end of fiscal 2007 in March. “This is a bill that directly affects the lives of the public,” he said. “If the bill is not approved before the end of the fiscal year, it would greatly affect not only revenues but also the lives of the people and economic activity.”
The Democratic Party of Japan (DPJ), which holds a majority in Japan’s Upper House, says they will submit a bill to abolish the gas taxes, and that they will reject the government bill. This is sure to set up another dramatic showdown that the DPJ hopes will allow them to destroy the ruling Liberal Democratic Part (LPD) and put the DPJ in power.
The government usually submits a tax reform bill to the Diet in early February but it moved forward the timing this year to secure enough time for deliberation in a divided Diet. The ruling bloc can override a rejection by the opposition-controlled Upper House with a two-thirds vote in the Lower House.
The Liberal Democratic Party-New Komeito ruling bloc aims to pass the tax reform bill in the Lower House in mid-February. Even if the Upper House rejects it, the coalition is ready to use the overriding two-thirds vote in the lower chamber.
So how is all of this playing among the assembly members who represent the people in areas outside of Tokyo. . . People who are most hurt by high tax rates and high energy costs?
Well, local representatives from the ruling LDP as well as opposition parties, including the DPJ, are clamoring for the government to keep the taxman’s boot heel firmly at the necks of their constituents.
About 450 prefectural assembly members from the ruling and opposition parties staged a rally Wednesday in Tokyo to call on policymakers to maintain the current tax rates on gasoline, roads and motor vehicle tonnage.
Assembly members from 44 prefectures, as well as Diet members from the Liberal Democratic Party, New Komeito, the Democratic Party of Japan, and Kokumin Shinto (People’s New Party), crowded the Kensei Kaikan auditorium near the Diet in Nagata-cho to campaign for continuing the extended tax rates, which were imposed in the ’70s and are due to expire at the end of March.
“Those who want to abolish the tax rates don’t understand the heavy traffic of the cities and the inadequate road network system of rural areas,” the assembly members said in a statement adopted at the rally.
One indication that the tax cut is a good idea its strong opposition by Tokyo Governor Shintaro Ishihara.
“In this era of motorization, the nation will be paralyzed if roads are not built,” Ishihara said. “We need to stop (the DPJ) with everything we’ve got.”
Upper House lawmaker Yasuhiro Oe, who is from the DPJ, expressed his opposition at the rally thusly:
If the DPJ antagonizes the people with this issue, it is not a party that places priority on the general public.
Got that?
If you are against gas taxes, which generally are dolled out through the corrupt Japanese highway authority and a corrupt bidding process, you do not have your priorities in the right place.
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