Ceremonial Hearings

While President of the United States asked Congress of support on his decision to have military attack on Syria, Prime Minister of Japan had been asking advice on his decision whether or not the rate of consumption tax should be raised. The government of Japan held “concentrated review meeting” for consumption tax hike, in which each of sixty people expressed their opinion on the issue. However, it is Shinzo Abe who has to decide. It is obvious that he just wanted accomplished facts of having heard on the issue.

The meeting was held spending six days late August. The attendee included economist, union leader, leader of local government or of non-profitable organization. Most of them supported tax hike schedule, which would be for raising by 3% in next April and by 2 % on October, 2015. The consumption tax rate will be raised from current 5% to 10% in one and a half years. “Employees and consumers are already added the tax hike on their schedule. If the decision would be turned down, actual economy will suffer very much,” told Hiromasa Yonekura, the Chairman of Keidanren, or Japan Business Association.

On the other side, consumers appealed the impact on people’s ordinary lives. “Higher consumption tax rate without rise of salary must cause greater poverty and gap between rich and poor. However, the president of Japanese Trade Union Confederation, Nobuaki Koga, supported the tax hike, because the decision was made by former DPJ administration to which the organization gave positive support. Koga instead requested reform of politics, pretending himself being a policy wonk focusing on political achievement, rather than workers’ better life.

Some economists insisted on trivial techniques how to exercise it. One proposed dividing the hike in five times, raising by one percent every year for five years. Another requested one-year delay of its starting point. Concern of the impact on economy was on the basis of their opinions.

The conclusion of the meeting is obvious: many people say many things. It is impossible for Abe to reflect all of their views in his decision on consumption tax hike, the result which has been expectable before the meeting. Accordingly, Abe seemed to have just wanted to shape a process that people’s opinions had been heard before his decision. Considering the fact that consumption tax hike requires a great political power, it is unlikely for him to give that up and reestablish national consensus risking backlash from voters. It is unfair for a national leader to let people responsible for his decision, anyway.