A Demand for Action to Address Japan's Economic Crisis and Restore Confidencカジノシークレット お勧めn its Future

September 11, 1995

Keidanren
(Japan Federation of Economic Organizations)


In this period of economic difficulty, with business continuing to stagnate and economic structural reform at a standstill, a sense of crisis about the future course of Japan's economy is mounting among corporate executives. Unless steps are taken quickly to revitalize the economy, corporations will have no choice but to further reduce their workforces, giving rise to thカジノシークレット お勧めossibility of employment unrest. The situation is to serious that strong concern is even being expressed overseas, about Japan's economy.

In order to extricate the Japanese economy from its stagnation and revive domestic and international confidencカジノシークレット お勧めn its future, the government should take a number of immediate measures, including: drastic reform of the tax system; prepare a second major supplementary budget; continue to move ahead with deregulation; and launch the relocation of the national capital, as soon as possible. It should, moreover, endeavor to further stabilize the exchange rate and build an economic environment in which corporation can grow to their full potential. Above all else, we strongly demand that the following items bカジノシークレット お勧めncluded in the economic package that the government is currently drafting.

  1. Drastic Tax Reform
  2. A sweeping reform of the tax system, including a revision of the ratio between direct and indirect taxation, is indispensable to achieving stable economic growth and affluent aging society. As an interim step, the following reforms affecting economic activity should be implemented:

    1. Lightening of the corporate tax burden through a major reduction in the national and local corporate tax, repeal of the land value tax and reduction of the fixed assets tax;

    2. Continuation of the 2 trillion yen special reduction in income tax that has been applied for two years.

    3. Abolition of special additional tax on long-term capital gains on land;

    4. Repeal of the securities transaction tax.

  3. Preparation of a Second Major Supplementary Budget (See Attachment)
  4. The government must prepare a second major supplementary budget of more than 5 trillion yen clear water base, and launch a series of on-going public works projects. Allocation of public works projects should not to be bound by the conventional criteria of the past, but should be based on which projects, in which locations, will contribute the most to the revitalization of the economy by promoting private sector investment. The government should not hesitate to raise the necessary funds for this budget through thカジノシークレット お勧めssuance of deficit-covering bonds.

  5. Further Progress in Deregulation
    1. All deregulation measures in the forty different areas (e.g. agriculture, finance, securities and distribution), announced by the Administrative Reform Committeカジノシークレット お勧めn July, should be implemented without delay.

    2. The government's revised schedule for implementation of The Deregulation Action Program should be disclosed and suggestions from both domestic and international sources should be adopted by the Administrative Reform Promotion Headquarters in accordance with thカジノシークレット お勧めrogram.

This position paper was distributed to the Japanesカジノシークレット お勧めress and was brought to thカジノシークレット お勧めrime Minister Murayama on September 11, 1995. The tax proposal of further detail was brought to public on October 11, 1995. Translation of the tax proposal should be available by middle of November, 1995.


Attachment

Main Items That Should Bカジノシークレット お勧めncluded In The Second Supplementary Budget for FY 1995

  1. Items Related to Earthquake Reconstruction:
  2. Items Related to Construction of New Capital:
  3. Enactment of Land Use Reform:
  4. Improvement of the Telecommunications Infrastructure:
  5. Reinforcement of the Science and Technology Infrastructure:
  6. Improvement of Transportation/Distribution Infrastructure:

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