The following is from Rui Abiru's regular column in yesterday's Sankei Shimbun.
The reality is that many people in the world, not just in Japan, do not even deserve the name of a journalist.
Rui Abiru is a rare and genuine active journalist.
His article, especially the latter part, is a must-read for Japanese citizens and people worldwide, providing us with critical facts.
This genuine article of his also brought a precious transcendence to me.
I will discuss this later.
The emphasis in the text, except for the headline, is mine.
Defense Tax Hike Rebuffed Due to Lack of Discussion
The public does not understand the defense tax hike advocated by Prime Minister Fumio Kishida.
According to a joint public opinion poll conducted by Sankei Shimbun and Fuji News Network (FNN) on March 21 and 22, more than two-thirds (67.3%) of respondents opposed the tax hike to finance defense spending.
It is even though more than half of the respondents were in favor of increasing defense spending itself.
Why is this so?
Perhaps it is because there is still a lack of consideration of ways to raise financial resources other than through taxes and because there has been no satisfactory explanation to the public as to why the use of government bonds or a review of the way government bonds are redeemed is not the way to go.
The logic that does not read
"Drastically strengthening the defense capability means buying fighter jets and missiles. Is it a good idea to finance this with debt? We should secure stable financial resources."
The prime minister emphasized this at a press conference on December 16, 2011, in conjunction with the Cabinet decision on the new "Three Security Documents.
However, the fundamental strengthening of defense capability is a much broader concept. For example, it may include improving the training and living environment of SDF personnel and protecting and fostering the defense industry.
Nor can one read any logic into the prime minister's words as to why he emphasizes the purchase of fighter jets and missiles and insists that debt (government bonds) should not be used.
Meanwhile, the LDP's Special Assignment Committee, chaired by LDP policy chief Koichi Hagiuda, is discussing a review of Japan's unique "60-year redemption rule," under which government bonds are redeemed in 60 years, as a way to raise financial resources.
The 60-year rule has been abandoned in other countries, and there is no particular rationale for the 60 years.
If it changed the rule to "80 years," 4 trillion yen per year would be freed up, which would be sufficient to finance the defense budget.
If, after thoroughly examining the feasibility of these various measures, it becomes clear that a tax hike is still necessary, it would be logical to appeal to the public at that time.
In the words of the Ministry of Finance
Chief Cabinet Secretary Hirokazu Matsuno expressed his cautious stance on the abolition or extension of the "60-year rule" at a press conference on March 12, saying, "There are some points of contention, such as the possibility of undermining market confidence in the fiscal situation.
It is the same argument as that of the Ministry of Finance.
Nevertheless, it is doubtful that changing a rule that is not an international standard will affect "market confidence."
It is reminiscent of when Prime Minister Shinzo Abe decided in 2014 to postpone the consumption tax hike from 8% to 10%; the Ministry of Finance was still vehemently opposed to the move, citing "market confidence" as the reason.
According to Abe, the Ministry of Finance argued that "Japan would lose international credibility and its government bonds would collapse if it postponed."
"Interest rates will rise to an unmanageable level."
"If we postpone, we will not be able to restore fiscal soundness."
However, these predictions failed at every turn.
JGBs did not plunge, interest rates did not soar, and the goal of halving the primary balance deficit in FY27 was achieved.
Mr. Abe had this to say.
"Nagatacho is being dragged down by the Ministry of Finance, which has been wrong all along. We don't have to follow their story."
The Ministry of Finance has repeatedly said that the increase in tax revenues from Abenomics will not be a stable source of income.
So, can the current corporate income and cigarette tax hikes, dependent on the economy and preferences for defense funding, be a stable source of revenue in the future?
Many citizens are willing to pay their fair share for defense if they are convinced it is indispensable.
If the government decides to raise taxes without thorough discussion and inadequate explanation, it is natural to feel that "the order of things is wrong.
(Editorial Writer and Political Editor)
January 26, 2023, in Kyoto
