Preliminary review of the Democratic Party over the bill the consumption tax hike, give priority to the consolidation of opinions settlement, incorporating goal effort as a "growth 2% 3% nominal and real growth" in the "elastic clause" to stop the tax increase, depending on economic conditions . But not the contents automatically bind to the growth rate achieved by the implementation of policy, the fact also became high hurdle. The tax increase led to the re-entry is completely removed from the "Outline" indicated a significant setback was the direction of drastic reform the tax system further into the black in the field of view (primary balance) of the basic fiscal balance fiscal year 2020.
Failed to show a clear political will for a commitment on fiscal consolidation remains an ambiguity, to correct the turn attached to future generations.
Procedural difficulties in the resistance of the party is extremely tax increase opponents, the final conclusion is Zurekon significantly in the last week of the month from the date of the execution unit 16 was originally intended. Tightrope walking the inversion state a view to a Cabinet decision of 30 days. Submit the bill during the year came to the prime minister, Yoshihiko Noda barely promise. However, the contents of the bill, repeatedly forced to concessions from the government draft, feasibility recession is undeniable.
In particular, to avoid the stated rate of growth to the "elastic clause" was negotiable red line for the executive. Against claims of opponents of tax increases and "should be specified as a condition to achieve nominal growth rate of 3%, 2% real growth rate", Division of Enforcement (set goals) can not do that (the tax increase) number " have penetrated the opposition the same as "as (Tax Commission chairman Hirohisa Fujii).
"3% nominal, 2% in real terms" growth has been approved by the Cabinet in the new growth strategy, also look at the achievements of the past 20 years, have exceeded the 3% nominal growth rate is four in fiscal 1991 the end of the bubble economy At the end is .9%, in fiscal year 2000 ─ 2007 before the collapse of Lehman Brothers will stay to 0.16% on average. For this reason, if the conditions to achieve the growth rate, because the realization of tax increases could Tonoki.
However, in the final phase, in order to aggregate opinion of the bill, decisive judgment and the Prime Minister Seiji Maehara, Yoshihiko Noda, chairman of the Policy Research Council, the Secretary-General Koshiishi east. In terms of elasticity of the "take the necessary measures and other implementation of comprehensive measures for close to an early economic growth desirable aim about 3% nominal economic growth rate, a 2% real economic growth rate," a new We walk up to fix the opposition faction carefully-tax increase that to guarantee the realization of the growth rate plus the wording, as stated in the new growth strategy. At the same time, the judge also stated that "on the comprehensive consideration of the economic conditions, such as" prior to the enforcement. You determine this by reading two items together, to "postpone tax increase" that vigilance and enforcement department is not connected.
Tax Commission Executive Director Shinichiro books were all negative press conference after the end of the description and view of postponing tax increases, with "it was confirmed that it is not a stop condition" is the achievement of economic growth. Was and is not bound by the implementation of the consumption tax increase in the growth rate automatically, hurdle for the realization was raised to certainty.
It has retreated substantially, with a view to raising the consumption tax rate to more than 10% "tax increase re-clause". Democratic Party government and the enforcement of this consumption tax hike in "milestone" of radical tax reform, in order to enhance further the stability and social security tax increase has been recognized that with the inevitable. Have an explicit attitude to "further information about tax reform, and take an action on the legislation it plans a 16 year" in the draft and the government, to determine the bill to raise taxes added to the end of fiscal 16.
However, tone down the direction of the tax increase added gradually in the preliminary review, from the government's plan as "take measures to prospect five years after the promulgation of the law", is deleted the wording of the "legislative and" timed "year 16" were let. "The flag pole is standing but battered or" ─ ─. Mr. books, which had been the Democratic Party says the government's obsession with the executive was put in the text, and finally, the entire item is removed comfortably.
Paper over the outcome Kotobajiri of "tax reform", wearing failed to convey the "political will towards achieving the target fiscal consolidation" credit rating agencies are likely to pay attention to size.
A goal the government fiscal soundness "halving of GDP budget deficit in fiscal year 2015 basic, a surplus in the year 2020", and has been stated at an international conference such as the G20 Summit. However, at the determined preliminary draft of the end of last year over the period to raise consumption tax, Democrats are the result of shifting half the time consumption tax hike give priority to consistency with the (commitment regime) manifest, 2009, the budget deficit fundamental fiscal 2015 half goal was to shift with the results after one year.