Tax Increase for People, Tax Evasion for Politician

In the discussion at Committee on Budget in House of Representatives, there is an ongoing discussion that the lawmakers with Liberal Democratic Party who were involved in slush fund scandal might have committed tax evasion. The opposition parties accused of LDP’s secret fund from factions to lawmakers as possible object of taxation, if a part of it had not spent and been remaining in the lawmaker’s hand. The discussion may further generate public criticisms against the handling of political fund by LDP lawmakers.

In the discussion of the committee, one of the members of Constitutional Democratic Party argued that former LDP Secretary General, Akira Amari, had received ¥380 million of “political activities fund” from LDP during 35 days between October and November in 2021, when he was at the position of secretary general. To the question whether he had completely spent all that fund, Prime Minister Fumio Kishida insisted that he recognized that money to have properly been dealt with.

 

Political activities fund is passed from a party to some leaders, which is not required to record on political fund report. Financial resource of the fund includes tax money collected from the people. One of the officers with National Tax Agency witnessed in the committee that a lawmaker would have to pay tax for the fund, if a part of it remains without being spent.

 

If Amari had not spent all the amount he received from LDP, he had to pay tax for the remaining. If Amari had properly spent all the fund, he must have been spending ¥450 thousand every hour for those 35 days. A source in LDP explainedthat the fund was spent for political advertisement including TV commercial.

 

The government of Japan plans to collect monthly ¥500 per person, as “the support for children and raising children,” for one of the important policies of Kishida administration for dealing with depopulation. Raising Kishida’s explanation on his policy that there would be no increase in people’s payment, the opposition parties criticize that the ¥500 of monthly payment must be regarded as a tax increase.

 

It is the season for the people in Japan to report the income in last year for a month from mid-February. The opposition parties offend LDP as effectively imposing tax on the people, in the season when the people are interested in tax, arguing that the lawmakers with the leading party evade tax on political fund. “Tax increase for people, tax evasion for politicians,” the head of CDP, Kenta Izumi, labeled Kishida’s policy in the committee.

 

Kishida explained that the payment for the people would be reduced by the reform of governmental spendings. However, it is not likely that the people will fundamentally believe in the words of Kishida, whose approval rate keeps on declining.

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