Following is the gist of remarks made by Mr. Takashi Imai, Chairman, Keidanren, on the scheduled press conference following monthly Chairman and Vice Chairmen's Meeting on 2 October 2000. Translation is rush and tentative, and sequence of the gist does not necessarily coincide with words delivered.
Keidanren conducted a series of simulation on burden (tax and social insurance payment to the government) of Japanese citizens, based on our assumption that Japanese citizens are hesitating to loosen their purses today because of uncertainties existing in future of their lives, which in turn is causing delay in the economic recovery.
The study, which will be released following the Board of Directors meeting later this month, provides five study results, ranging from do-nothing scenario which will bring 71.8% (46% tax, 25.7% social insurance)burden in 2025; to all-efforts combined scenario of decreasing receivables and increasing burden of social insurance, putting more tax money to social insurance, increasing burden of consumption tax (to 10%), and cutting down governmental public spending, which will bring 46.5% (31.5% tax, 15% social insurance) burden in 2025. Keidanren believes that the Japanese citizens would not accept burden of far above 50%.
It is our honest wish to bring about nationwide discussion on the fate of this country so that we will be confident in our future once more.