tomoki0kun’s diary


今日のボヤキ 7/5

今日のボヤキ 7/5































English edition


Today's Blurbs


Continuing on from yesterday, here is "What is the consumption tax used for?"


Social Security cuts

First, as it turns out, Social Security spending has been cut.


Hmmm? Isn't that what they are saying and what they are doing? Isn't that right?

The government collects taxes from the public, saying they are necessary to improve social security, but instead of increasing the amount, it is decreasing it.

The truth is that social insurance premiums are rising while benefits, pensions, and long-term care fees are decreasing, and only about 20% of those in need of public assistance are actually receiving it.


  • Can this still justify a consumption tax hike?

As mentioned in yesterday's history of the consumption tax, in 2012, the consumption tax was clearly stated for the first time how it would be used, but is it deceiving the public by saying "to improve social security"? It is not surprising that some people think so. ....?

We have to keep in mind that the government does not make a big deal about things like this that are not very convenient for them.



  • Why are corporate taxes decreasing?

In contrast to the consumption tax, the "corporate tax" has been decreasing.

Why are corporate taxes decreasing?

The purpose was to prevent the "hollowing out" of the nation's industries and to stimulate employment by "attracting" factories and branch offices from abroad.

However, Japan is now a developed country with higher labor costs than other developing countries, and companies end up moving to countries where wages can be kept low.

The corporate tax rate has been reduced from 40.0% to 23.2%.

Even with this reduction, the corporate tax rate is not low enough to attract companies from other countries, and even with the recent yen depreciation boom, few things can be exported from Japan as in the past high-growth period, so the benefits of the weak yen are not being felt as much anymore.


So, it is not as if companies are not making money.

Corporate retained earnings have reached a record high.

In other words, although corporate pocket money is increasing, it is not being reflected in the income of employees, but is merely increasing the balances in corporate accounts.

In addition, under the current Japanese system, the tax rate is lower for large companies, and the current tax system is more severe for small and medium-sized companies.


We need to choose our future.

This is not an intergenerational issue, but one that must be considered by the entire nation.