Ahead of election, CDP chief vows 'responsible' tax cut

Japan Times

2 days ago

Constitutional Democratic Party of Japan (CDP) chief Yoshihiko Noda has said that his party's pledge to reduce the consumption tax rate on food items to zero is a "responsible tax cut" because the pledge comes with a funding measure.
"Measures to cope with rising prices will be the biggest focus (of the July 20 House of Councilors election)," Noda said in an interview on Wednesday. "We've pledged to implement a zero tax rate for food for one year in principle."
"It will be a responsible tax cut with a deadline and a clearly outlined funding source," Noda stressed. "We won't issue debt-covering bonds, nor will we create a hole in social security. ... It's distinct from (the tax reduction proposals of) other parties."
Noda argued that the ruling Liberal Democratic Party's cash handout proposal "does not come with a clear design of how it will be funded," adding that the LDP has gone from "no policy" to "bad policy."
In contrast, the CDP's plan to provide ¥20,000 ($138) per person as a provisional measure would be financed with reserve funds from the government's general and special accounts, according to Noda.
The CDP chief said that his party's goal in the Upper House election is to maximize opposition seats and prevent the ruling bloc from winning half of the Upper House seats up for grabs this time.
"We'll work hard to hopefully force (the ruling bloc) into a minority (in the Upper House) as a whole," which would make a change in government "more realistic," Noda said.
When asked if the CDP aims to form a coalition government with other opposition parties, Noda said, "We'll basically seek to form a government independently." However, he suggested that his party could consider a coalition if it does not have enough seats.
Noda noted that a coalition with the Japanese Communist Party would be impossible without a "considerable" policy agreement.
Meanwhile, Noda pointed out that little progress has been made on social security reform since the CDP's predecessor lost power. "We need to reboot once again," he said.
The CDP leader dismissed the idea of forming a grand coalition with the LDP in order to advance the CDP's proposal for a refundable tax credit program.
"I don't think we should consider such a drastic move for just one policy," he said.