In the LDP presidential election held on the 27th, former Secretary-General Shigeru Ishiba was elected as the new president. During the election campaign, comments regarding taxes attracted attention as to how economic policy would change. Two days before the announcement, he called for increased taxation on financial income, such as profits from stock sales. Also, on an internet program on the 21st, he said, “There is room to raise corporate tax.” “There are still corporations that have the capacity to bear the tax burden. “I would like to ask that people shoulder a little more of the burden,” he said, upholding the principle of ability-to-pay tax, saying that there is room to ask individuals who are able to pay to pay more in income tax as well. However, other candidates have pointed out that strengthening taxation on financial income goes against the trend of “from savings to investment” that the Kishida administration has been promoting, including the expansion of the NISA (tax-free small investment scheme), which exempts dividends and other profits from taxation. They were forced to explain, “We have no intention of increasing taxation on the new NISA and iDeCo (individual-type defined contribution pension plan).” In the first place, the strengthening of financial income taxation was announced by Prime Minister Kishida Fumio in 2021, which led to the “Kishida shock’’ in which stock prices fell sharply. Attention is focused on future responses, including explanations to the market. Regarding measures to combat rising prices, he said on a television program that “raising wages is the most immediate solution.” They also argue that fiscal reconstruction should be pursued, and are cautious about further extending subsidies for electricity and gas bills, which are scheduled to expire after October usage. On the other hand, the government will take emergency measures to address the impact of rising prices of daily necessities and rising mortgage interest rates. The government has also indicated its intention to submit a bill to amend the Subcontracting Act to the next ordinary session of the Diet in order to create an environment for wage increases and strengthen measures to prevent price pass-on. He also pledges to support companies in improving productivity and to raise the national minimum wage to 1,500 yen in the 2020s. This will be brought forward from the current administration’s target of the mid-2030s. The government plans to make escaping deflation its top priority by promoting investment, and its growth strategy is expected to continue Kishida’s line. Ishihara’s main focus is on regional revitalization, which he positions as a “catalyst for the Japanese economy.” Digital technology will help correct the over-concentration of businesses in Tokyo and encourage them to expand into regional areas, leading to job creation in those areas. The tourism industry will also be positioned as a pillar for revitalizing local economies. He has set the goal of establishing a “New Regional Economic and Living Environment Creation Headquarters” and will focus on tackling population decline. He also indicated his willingness to examine the merits and demerits of Abenomics, saying, “I also served as Secretary-General for two years (during the Abe administration).” The Cabinet Secretariat will consider establishing an organization to replace the current Council on Economic and Fiscal Policy, which will be responsible for responding to crises in the economy, finance, markets, and other areas. The aim is to strengthen cooperation with the Bank of Japan and overseas governments. Regarding energy policy, he initially claimed that he wanted to “get closer to zero nuclear power,” but has since corrected course, stating that “a stable energy supply is the lifeline of the nation.” He advocates promoting geothermal and small-scale hydroelectric power generation and maximizing energy conservation. [Yamashita Takashi] Mainichi Shimbun 2024/9/27 15:43 (Last updated 9/27 16:21) ★12024/09/27 (Fri) 17:52:31.75 ※Previous thread.
If you obediently increase your campaign promise achievement rate, you’ll get crushed by the mass media like Saito did. The secret to lasting is to do things half-heartedly.
If we tax financial income, I think Japan will no longer be a financial nation and will have nothing left. How are you going to make a living? Inbound tourists will get tired of you soon.
It means that there was no major defeat in the election. The business community expected this. The Ministry of Finance is also smiling as Prime Minister Noda plans to increase the consumption tax. The business community expected this.
But isn’t it Suga who is behind the scenes saying “we won’t investigate tax havens”? If they suck money from ordinary people and leave the wealthy separate, the public will strongly rebel.
Since Japan has a low labor distribution rate, corporate taxes should be raised, and since there are tax breaks for NISA and iDeCo, it makes sense to increase taxes on other financial income as well.
>>43 Maybe the goal is to get people to sell stocks, lower the market capitalization of companies, and sell them off overseas. The elderly want that too, and are happy about the financial income tax.
If he is elected Prime Minister and fails to dissolve the government within a short period of time, he will likely be forced to resign. It looks like things will turn out like this. The stock price is going to fall.
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