600 million yen donation to LDP turns into 3 billion yen tax cut

600 million yen donation to LDP turns into 3 billion yen tax cut

Japan Press Weekly:  26 October 2015

 

Akahata on October 26 revealed that six major automakers and the three largest steelmakers have received three billion yen in corporate tax breaks in return for 600 million yen in donations to the ruling Liberal Democratic Party during the past three years.
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The Industrial Revitalization Law that provides large companies with tax ...breaks was enacted in October 1999, endorsed by the LDP, the Liberal Party, the Komei Party, and later the Democratic Party of Japan. Between October 1999 and July 2003, 217 companies saved 81 billion yen through corporate tax breaks in exchange for their plans to cut their number of employees by 90,000. This was a 900,000 yen tax cut per employee, and these corporations were then able to donate more to the LDP.
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Under the Industrial Revitalization Law, suggested by business circles in the first place, if a company's restructuring plan meets the government's standards, this company becomes eligible to receive tax breaks. The business community donates vast amounts of money every year to press political parties, except for the Japanese Communist Party, to promote legislation in favor of the business world. The Industrial Revitalization Law is a typical example of this.
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The JCP has consistently opposed the system of using tax money to encourage corporate restructuring

company	Plans to cut workforce	Received in tax breaks	Donated to the LDP
Mitsubishi Motors Corporation	4096	609 million yen	44 million yen
Toyota Motor Corporation	3259	355 million yen	194.2 million yen
Mazda Motor Corporation	1199	353 million yen	55.2 million yen
Hino Motors, Ltd.	1060	333 million yen	35.37 million yen
Fuji Heavy Industrial Ltd.	1318	310 million yen	55.35 million yen
Suzuki Motor Corporation	873	178 million yen	67.82 million yen
JFE (Kawasaki Steel Corporation and NKK Corporation merged in Sep. 2002)	3295	578 million yen	82.6 million yen
Sumitomo Metal Industries, Ltd.	1945	246 million yen	41.3 million yen
Kobe Steel, Ltd.	692	17 million yen	31.3 million yen
Total	17737	2979 million yen	607.14 million yen

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