Comments on the "Economic and Fiscal Reform 2008 (Basic Policies 2008)"

Hiroshi Shimozuma
Chairman
Kansai Economic Federation

1. The "Economic and Fiscal Reform 2008", which has been decided upon by the Cabinet, deserves recognition in that it elaborates upon "our responsibility towards future generations," including how national finances and the social security system should be sustained and how to confront global warming, while at the same time placing top priority on strengthening growth potential of the Japanese economy.
Going forward, we hope that under the strong leadership of the Prime Minister, every effort will be made to implement the themes which have been taken up in these policies.

2. We hope that the government will exert itself to the utmost towards eliminating any and all "waste" in every aspect of policy implementation, improving efficiency in expenditures, and stimulating the national economy, so as to avoid tax increases and achieve a primary balance (PB) surplus by fiscal 2011.

3. With regard to the fundamental reform of the taxation system, the government should advance deliberations on the issue including review corporate taxation with an eye towards further strengthening the growth potential of the Japanese economy, as well as discussions about the consumption tax system as a way of promoting decentralization reform.

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