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JAPAN - Liberal Democratic Party Secretary General Taro Aso is expected to set out plans to aggressively increase government spending over the next three years to pump-prime the economy in his blueprint for the leadership of the party, The Yomiuri Shimbun learned Sunday.
Kaoru Yosano, state minister in charge of economic and fiscal policy who also likely will run in the presidential election, is expected to vow to continue of the current government policy of fiscal restraint in his blueprint.
Yosano is thought likely to pledge to allocate consumption tax revenue solely for social security programs, and to overhaul the current tax system, including a introducing a consumption tax hike, over the next three years.
Aso is expected to announce his campaign manifesto, titled "Japan's potential strength--Creating a strong and cheerful Japan," on Tuesday.
Aso will pledge to put in place a 11.7 trillion yen economic stimulus package, to be compiled by the government and the ruling bloc in August, and cut income tax by a fixed amount as promised in the package.
"I'll take measures to boost the economy through tax cuts and regulatory reforms," Aso says in his manifesto, apparently with an expansion of preferential tax measures for stock swaps in mind.
Aso has reiterated his stance to postpone a government plan to return the nation's primary balance to the black in fiscal 2011.
"While maintaining the fiscal rehabilitation policy, I'll be flexible about taking necessary measures," he says.
Aso's manifesto does not mention how he would handle the consumption tax issue.
"I'll promote national discussion to ensure stable financial sources for the pension system," he says.
Yosano is expected to announce Monday his blueprint, titled "Dignifed politics, agreeable reforms," in which he cites nine issues.
In his blueprint, Yosano commits to replacing the consumption tax with a social security tax, the revenue from which would be spent solely to cover social security expenses. Under the plan the new tax would be introduced within three years.
The blueprint also includes plans to review other taxes, such as income tax and corporate tax. Yosano states he wants to present a bill that would overhaul the tax system--indicating how he would proceed with the revisions.
Former Defense Minister Yuriko Koike, who also has shown her intent to run in the election, is expected to announce her blueprint Monday.
Her manifesto is expected to include a plan for the establishment of an environment tax to tackle global warming and assist the creation of new environmentally friendly energy industries as well as measures to improve the working environment for women.
Yasufumi Tanahashi, a former state minister in charge of science and technology policy, and Ichita Yamamoto, a House of Councillors member, continued Sunday with efforts to secure the required signatures of 20 LDP legislators that would allow them to run in the election. However, it was still unclear Sunday whether they would succeed. Some of their supporters have started to look into the possibility of the two groups running one candidate.
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