Toshio Tamogami (田母神俊雄) argues that major tax cuts are the key to reviving Japan's economy. In light of the long-term rise in the national burden ratio and the current state of public finances, he calls for fiscal reform, including permanent tax cuts.
The national burden ratio rose from approximately 25.7% in fiscal 1975 to approximately 46.1% in fiscal 2025, while wage growth and purchasing power have slowed over an extended period. While arguing that taxes are not a source of funds, he criticizes the government's stance of not moving forward with tax cuts and maintains that increasing households' disposable income would stimulate consumption and investment. He also points out that sluggish wage growth and rising taxes and social insurance premiums are reducing the money people have left available.
He also addresses Japan's declining position in the global economy, stating that IMF estimates suggest Japan could be overtaken by India and the UK next fiscal year and fall to sixth place globally in terms of GDP measured in US dollars. He expresses the view that the trend toward fiscal austerity has led to a prolonged recession and refers to the debate over government bond issuance and the approach to fiscal spending.
He states that the government is being asked to implement policies that increase people's disposable income and stimulate consumption and investment, and that simply ending the consumption tax reduction after 2 years would be insufficient. He argues that it is important to increase the money people will have available to spend in the future through permanent tax cuts and reductions in the burden of social insurance premiums.
In light of the reality that real income and economic growth have stagnated alongside the rise in the national burden ratio, he concludes that policy should shift toward returning money to the public and encouraging consumption and investment, positioning major tax cuts as an option for reviving Japan's economy. Toshio Tamogami (田母神俊雄)