Jason Irwin dot Net

Road Tax Alternatives Required

February 12, 2008 Politics, World

The 2008 budget deliberations have begun at the House of Representatives in Tokyo, and it will likely be another example of why the Japanese political system is so broken.

The two major parties must present their views in a Fisher-Price fashion so that voters can understand the valid contentious issues regarding the collection of taxes allocated for road construction. This includes the taxes collected through the Provisional Gasoline Tax Law that expires on April 1st.

In addition to the tax revenues for road projects, several other policy matters need to be discussed. Pensions, Medicare and the possible consumption tax hike are all areas that must be addressed. Considering consumer’s confusion and non-confidence regarding the economic future of this nation, it’s important that this new budget and taxation system update is completed and passed before the 2007 fiscal period comes to a close on March 31st.

If the parties continue to bicker about the Provisional Gas Tax rate until it’s too late, the government has promised that the shortfall in funds would over-burden the people as other areas would look to replace the fiduciary kerfuffle.

It’s Funny Because …

Due to the impasse with the ruling parties, the lower house speaker offered to mediate on the gas tax law revision late last month to avoid the possibility of fisticuffs in the parliament over the farce of epic proportions that is the provisional gasoline tax.

It’s not a farce due to the possibility of this “temporary measure” introduced 15 years ago will be extended for another decade, but because the two parties couldn’t care less about the cost of fuel in this country. The taxpayers cover every politicians’ commutation fee. Limo and all. So why would the feds care that gasoline has an extra 24.2 Yen tax on top of the market rate?

That’s right … they don’t. It’s all about building favor for a political party that’s just as heinously corrupt as the existing regime. The only difference is the amount of jealousy one side has for the other.

The Fix

In order to correct the matter, I think Japan should consider revising their American “Bend-Over-And-Take-It” laws. As it is, the Japanese government pays pretty close to Two Trillion Yen ($20-Billion USD) annually to the American military in the form of fuel, defense base rent, embassy and consulate rent, air space use, and a host of other activities. If Japan cuts this in half and puts that money towards domestic projects such as the pension or medical system, other taxes could be frozen in place.

Naturally, the Gas Tax would need to be revised to ensure the provisional tax rate is made eternal, but aside from this change there would be no need to raise the consumption tax or look at other ways to generate revenues from imported or exported goods. The economy would be happy. The people would be happy to see less of an American presence on Japanese soil. And the voters would see the LDP as a party that truly wants to introduce reform to the House of Representatives.

It’s funny how they all talk about reform, though, since the LDP has been the sole party in power for 60 years. By using the word “reform”, they’re very gingerly stepping around the fact that they’ve done such a piss-poor job in the first place that they need to change things just to keep the general public happy.

No Dice

Unfortunately, the Japanese government will not stand up to the United States anytime soon, as the subject is one of those political taboos. Perhaps we’ll see a change when Japan gets their own Obama.

Tags: