My opinion of this week(292):

Low voting rate

The ruling parties got five seat in by-election made at last Sunday.
They declared the victory over opposition parties that were covered with
sad air after the elections. But was it the confidence vote for the
present Koizumi Cabinet and for ruling parties? It was not so obviously
when we look at such a low voting rate of those elections.

Hara-san sent a message to our ML saying :"Is Japanese democracy dead?"
Many other mailing pals sent comment criticizing very low indifference 
of people for the elections even under such a very important political 
situation of this country. We discussed why this is.

In the meantime, political world is now in an uproar on treatment plan
for bad debt of banking industries to be presented by Heizo Takenaka,
Minister of Economic and Monetary Affairs. Many lawmakers and
presidents of major banks are severely against the plan with the reason
that there arise much more chaos when it would be exercised. But most
people in this country are not quite conscious about what is going
on and about what is going to be done. 

The lawmakers who are against the plan, advocate the necessity of
preparing  some additional supplementary budgets and of increasing
public spending to overcome deflation. All are the same old things 
which have been done in the past. 

Any of such conventional measures will not be so effective as far as
I observe the current situation. They will not work out because
it is the mind of people, not the economy which is in serious
deflationary  condition.

People are not satisfied with the current condition of economy.
But they are not positive at all how to overcome this stagnant
situation. Wait and see is their typical stance on their way of
life. 

No improvement will be made on our life and economy unless people
have more strong awareness about politics and economy. Low voting
rare is just an example of deflationary  mind of people of this
country.

2002/11/2
Tadashi HAYASE

My opinion of this week(293):

NHK TV news reported that several members of Liberal Democratic Party
requested to improve Tax System Research Council of their party so that
the council would become more opened one. They are against the fact that
the council is dominated by some number of senior lawmakers.

Prime Minister Koizumi commented to say: "It's a good move." One of a
senior member of the council said:"The council is very opened originally.
We welcome many more lawmakers will join to discuss tax issues."

I myself have had some kind of doubt about the existence of this tax council.
They argue the tax system all through year and proposed the change of 
taxation system in way or the other. It seems that Japanese taxation
system just continue to become much more complicated as a result.

Obviously, their basic stance is how to take more taxes from various tax
sources by seemingly rational ways. They reduce this part, but increase
another part and other way around. They try to take tax from sources where
there exists little resistance. The total system just continue to become
more complicated.

We welcome the move to improve tax system itself. But we scarcely see
a kind of very fundamental argument as to why tax is necessary, how
tax system should be improved to stimulate current stagnant economy 
and so forth.

From the side of people of this country, some necessary arguments on
improvement of tax system are very clear as follows:

 ・Lesser taxes are better. All sort of taxes are very high in Japan.
   We understand the necessity of taxes for our life, administrative
   services and welfares. But taxes are high to maintain very 
   inefficient administrative system in this country. The argument of
   administrative reform should be done before or in along with 
   tax system.

  ・Simplification of current tax system is absolutely necessary.　Because
    of their complexity, people of this country have little interest
    on tax issue because of their ignorance.

The real issue here is not reform of tax system, but more fund metal 
argument on structural reform of administrative system of this country
from my point of view.

2002/11/9
Tadashi HAYASE

My opinion of this week(294):

Can Japan prepare for sanction for North Korea?

The husband and two daughters of Hitomi Soga, one of five Japanese
abducted by North Korea who are now back in Japan, have said they
want her to return to Pyongyang as soon as possible, according to
report of a Japanese weekly magazine. Hitomi Soga was hardly upset
by this report. The other five people now back in Japan may be same
way. This is obviously a kind of propaganda by North Korea.

The same kind of propaganda using Japanese mass media wad done in 
the case of a daughter of Megumi Yokota a few weeks ago. Why are
Japanese mass media so easy to make such careless reports? They
are to be accused first.

But parting from that issue, we must recognize the fact that how
North Korea is such an outrageous country. They are doing that kind
of stinky hostage actions in front of international society. I just
wonder how Japan can start normalizing talk on diplomatic 
relationship with such an outrageous country. 

Happiness and pleasures of eight returned people turned into suffering.
That cannot be helped in a way. But the question is how soon their
hardship will be dissolved. How will Japanese Government negotiate with
this rogue nation? They keep saying the negotiation will be done
strongly and persistently. But unless there were some stronger and
concrete actions, there would be no solution at all in the foreseeable 
future.

Japanese Government is corpora ting with US on the issue of development
of nuclear weapon by North Korea. But why do they ask US to corporate
to take some kind of sectional measures against North Korea on the
abduction. They should also make some stronger appeal to international
community including UN on this issue.

We know that Japan could never take any military actions. Japan is
very weak in negotiation because North Korea knows this. But Japan
can take some more stronger and effective retaliation including 
all sort of economic sanctions. They are to be justified in 
international society. 

The issue is not only for those who are abducted and their families.
This is the issue of national securities of all people of this country.

All Japanese and Prime Minister Koizumi and all leaders of this nation
are now prepared to take some stronger and concrete sectional actions
against this an axis of evil to survive in international world.

2002/11/16
Tadashi HAYASE

My opinion of this week(295)

Looking away from reality

The Government has put off again some of the necessary actions to
normalize  bad debt issues of banks. Keeping national bond issue
within 33 trillion yen was political promise of Koizumi Cabinet.
But they changed that policy again. Prime Minister Koizumi said 
no additional expense budget is not necessary but he also changed
this word saying considerable amount of money would be invested 
to meet current deflation situation of economy. 

They are going to announce a kind of very stupid tax reform plan.
Some reduction of tax will be followed by tax increase measures in
near future which seems to be very poor way. We have already seen
all of those silly pattern of administrative practice several times
in the past since the born of Koizumi cabinet. "Too little, too 
slow" is the word for it.

The one big issue is that the captain and crew members of Ship of
Japan lack the sense of crisis on the present situation. This is
one big issue but this is due to very low political awareness of 
people of this country.  

They neither trust political capability of the captain nor
that of crew members. But they don't care about some of those 
serious issues at any rate. They just look away from reality and 
wait for a kind of better situation to come. They never imagine 
such sense of inaction will end up with more serious result.

Are there any such countries in which such poor politics is 
being done in the world ? Talking about politics and policies
presented by the Government does not make any sense for those 
apathy people. 

Unless they would face a kind of more fatal situation, they would
never wake up.

What a stupid and woeful situation it is!

2002/11/23
Tadashi HAYASE

My opinion of this week(296):

Introduction of  pro forma standard taxation

Introduction of pro forma standard taxation is being discussed by lawmakers
of ruling parties and the Tax Council of Liberal Democratic Party. We 
understand a background for it. Tax revenue of this country has declined 
greatly due to long lasting slump of economy. The Government needs to find
a new source of tax revenue.

Pro forma standard taxation was firstly introduced against city banks in 
Tokyo by Governor Ishihara. No other industries were not the target for 
taxation except city banks. The group of city banks appealed for the court
insisting that it is illegal method of taxation.

Pro  pro forma standard taxation is to take tax on gross profit of business
firms rather than on net profit after deducting various operating expenses
from gross profit that is the present basic taxation for business firms.
But under the current economic situation, where 80% of business firms are
red in net profit, Tax office needs to find some new sources of tax revenue
including such new tax system. 

The Government Tax authority have doubt that some business firms are not 
paying corporate tax by manipulating operating expenses in one way or the 
other. That may be possible. Then they consider to take corporate tax by 
levying it on gross profit rather than net profit.

When Tokyo Prefecture introduced this tax system, I supported this new
system by writing in My pinion of this week.  It is because any of those banks' 
business operation are not fair in the sense that salary and wages of city
banks are very high compared with those of any other industries.There are
some other such high operating expenses compared with other industries in
many  respect. Regardless the result of court judgment on this issue, the new 
taxation system introduced by Governor Ishihara has provided a good 
opportunity to argue the basic issue of corporate taxation.

Contrary to the taxation against city banks, I am against the introduction
of the tax against all other business firms. Under the current economic
situation, it is most important to provide business enterprises the incentive
to make innovative works of any kind. Pro forma taxation will provide
a big minus effect for any of such research and development works. That
should not be done at the moment and also in the future.

Government Tax Authority is going to reduce tax in one way, and to increase
tax in another way. They are going to do the same by introducing this new
tax system. 

While Tax Authority consider to introduce such new taxation, they try to
provide a special tax reduction on research and development works. I don't 
believe that such manipulation will not work in the long run. 

2002/11/30
Tadashi HAYESE