Shinshinto said Wednesday that Prime Minister Ryutaro Hashimoto's sudden announcement of a 2 trillion yen tax cut demonstrates the failures of his administration's economic policies.
Takeshi Noda, policy chief for the largest opposition party, told a news conference that the decision to introduce the one-time tax cut is too late to effectively lift the stagnant economy. "We have been saying that the current economic failure was caused by incorrect policies," Noda said. "We strongly demand that the Hashimoto administration resign to take responsibility for causing this."
Noda said the tax cuts should not be one-time measures but should continue. This would prompt consumers to spend -- instead of feeling obliged to save their windfall -- and help the economic recovery.