|The Reason NEW KOMEITO agreed to the consumption tax hike|
[Photo] House of Representatives plenary session 2012/05/11
On June 15, 2012, the DPJ, LDP and NEW KOMEITO agreed to amend the consumption tax hike and social security reform bills.
In 2009 the ruling parties, the LDP and NEW KOMEITO decided on tax system reform including a consumption tax hike to curtail increasing social security costs.
Nevertheless, the third Prime Minister of the DPJ, Yoshihiko Noda submitted a bill to increase the consumption tax to the Diet in 2012.
I think the NEW KOMEITO is responsible for a fiscal adjustment and we can't disengage from the three party talks to amend the consumption tax bills.
Therefore, it is better for us to reflect our policies to this amendment, such as changing the pension system, complex tax rates, and child support system.
The NEW KOMEITO required five conditions to support this legislation, and the DPJ swallowed them all.