Tracking the Destination of Taxes: Exposing the Black Box

Is "Kasumigaseki," where central government offices are concentrated, and local governments intentionally making the use of tax money difficult to see? As I unraveled this hypothesis through reporting, I arrived at unpublished "primary information" on social media and other platforms, which piqued my curiosity. However, reporting under my real name was always accompanied by fear, and I felt intimidated many times. The only way to dispel that anxiety was to keep accumulating more reporting.

The catalyst was the government's "Sustainability Benefit Program." It provided up to 2 million yen to businesses whose revenues deteriorated due to the COVID-19 pandemic, with total benefits reaching 5.5 trillion yen. However, this project was outsourced to a certain general incorporated association established by major advertising agencies and others. It was referred to as a "middleman corporation," and one source testified that the purpose of using a general incorporated association was to "legally" bypass the oversight of government agencies. It was a method that the government had been forced to overlook for many years.

I also delved into the issue of "personnel cost unit prices" in the outsourced work for the Tokyo Olympic and Paralympic Games. Contract documents for venue operations and their breakdowns stated amounts such as "up to 350,000 yen per person per day," which is about five times higher than typical government-outsourced projects. Later, bid-rigging surfaced regarding venue operations, leading to a series of arrests among officials from the organizing committee and contracted companies. The documents I obtained were highly likely the basis for retroactively adjusting figures decided at prices close to whatever was asked as "personnel cost unit prices." I approached the reality of these veiled "personnel cost unit prices."

In addition, the "handout" policies that supported medical institutions and companies during the pandemic showed a clear contrast between the aspects that were effective and the uses that deviated from common sense. I also covered the reality of public funds being privately exploited at the "local" level in fire brigades and agriculture, funds referred to as "legal slush funds," and the ever-increasing costs of defense equipment.

Tax revenue for fiscal 2021 reached a record high of 67 trillion yen. On the other hand, social security expenditures continue to swell, and fiscal spending during the pandemic exceeded 100 trillion yen. Currently, there are moves toward tax increases under the banner of "drastic reinforcement of defense capabilities," but perhaps there are things that should be reviewed before that——. With this awareness of the issues, I followed Kasumigaseki during the "emergency" of the pandemic for three years.

Tracking the Destination of Taxes: Exposing the Black Box

Yuki Takahashi

Kobunsha Shinsho

248 pages, 946 yen (tax included)

*Affiliations and titles are as of the time the magazine was published.