If the “income barrier” proposed by the Democratic Party for the People is revised, it is possible that the scope of recipients of support such as free childcare and grants for low-income earners will expand. If the tax-exemption limit is raised, the number of households that are exempt from resident tax, which is a prerequisite for receiving support, will increase. However, it will also lead to an increase in government expenditures. In addition to the decrease in tax revenue, this will be a blow to the finances, and government officials are bracing for the impact to be immeasurable. This is likely to be one of the focal points in discussions with the LDP and Komeito. The standard for incurring income tax is an annual income of 1.03 million yen, and in principle, 1 million yen for resident tax. It is pointed out that both of these are “barriers” that cause part-time employees to limit their working hours, as they are conscious of the decrease in their take-home pay. In the House of Representatives election, the Democratic Party for the People pledged to raise the income tax threshold by 750,000 yen to 1.78 million yen. They argued that the reduction in income tax and local resident tax burdens would increase take-home pay for a wide range of income brackets. If the review is carried out, there will “certainly be an increase” in the number of non-taxable households, which is estimated to be around 15 million nationwide, according to a senior official at the Ministry of Internal Affairs and Communications. Non-taxable households will enjoy free childcare fees for children aged 0 to 2, and will also have lower maximum medical expenses and lower insurance premiums. November 7, 2024 16:42 Kyodo News *Related thread Constitutional Democratic Party Secretary-General: “I would like to discuss with the Democratic Party for the People to review the ‘income barrier'” “It is important to increase disposable income” ★3 [Rejected★].
>>1 The 1.03 million yen limit should be abolished, and married couples should be allowed to deduct the amount according to the number of children under 18. For working students aged 18 and over, an age limit could be set and a separate deduction could be set. This will allow part-time housewives and working students to work, helping to alleviate labor shortages and also helping to address the declining birthrate.
Regarding the government’s new economic measures, the National Governors’ Association expressed concern that a review of the so-called “1.03 million yen annual income barrier” called for by the Democratic Party for the People, could result in a decrease in revenue for local governments, and called on the government to give it careful consideration. Miyagi Governor Murai expressed concern that the review of the so-called “1.03 million yen annual income barrier” requested by the Democratic Party for the People could result in a decrease in local government revenues, based on the fact that Internal Affairs and Communications Minister Murakami had previously indicated that local individual resident taxes would see a decrease of around 4 trillion yen in revenues. Miyazaki Governor Kono told reporters, “At a time when there are many issues to be addressed, such as measures to combat high prices and regional revitalization, a decrease in revenue will have an extremely large impact on local areas. “I am concerned about discussions that could lead to reduced revenue.”
Wouldn’t it be better to leave the 1.03 million yen as is and raise the spousal deduction to 500,000 or 1 million? There’s no point in increasing the number of non-taxable households.
It’s a tool for the LDP and Komeito to win votes. First of all, they should immediately remove from the list those wealthy people who are included in non-taxable households.
>>18 Singles should make enough money to be called the bachelor aristocracy, and when they get older, they will gather around our children’s generation, so they should be exempt from paying tax.
It’s obvious that the right answer would be to cover the costs by raising corporate taxes, but the Liberal Democratic Party, which is receiving bribes from the Keidanren, would never be able to do that.
It seems that the ruling party will once again hand out temporary benefits to households not subject to resident tax. I wonder if the Democratic Party for the People will also agree with this.
Isn’t that even reasonable in the first place? The problem is that they’ve cut off the working poor who are struggling to make ends meet from support by using a false tax exemption line, and instead continued to exploit them.
To determine whether or not someone really needs assistance, the only way is to link all their accounts to their individual numbers and grasp their personal assets. But publicly, there’s a lot of opposition. There are assets that fluctuate, and the system is difficult. Therefore, it is inevitable that increasing the basic deduction amount will lead to an increase in the number of households that are exempt from resident tax.
28Smart people are also good at lying, so don’t trust them easily.Nov. 7, 2024 (Thu) 18:36:50.63ID:kQ0ZSZt/0
The Ministry of Finance absolutely does not want to cut taxes. It’s tough.
Blame the Liberal Democratic Party members in the countryside who voted for him in the presidential election, saying things like, “Ishiba-san, he cares about the local areas.”
At the very least, they should be non-taxable households with assets valued at less than 5 million yen. Since you’ve already created your My Number, you should at least do that.
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