※11/22 (Fri) 12:46 smartflash As the public’s attention is focused on the “1.03 million yen annual income barrier,” it seems as if the “salaryman tax increase” is about to be revived in the confusion. On November 15, various media outlets reported that the Government Tax Commission, an advisory body to the Prime Minister, had begun discussions on revising taxation on retirement benefits. “Under the current system, the income tax on retirement benefits is reduced the longer you work for the same company. However, in the Reiwa era, when the lifetime employment system is said to be beginning to collapse, there have been many opinions that the current system should be improved. However, it goes without saying that salaried workers cannot ignore the “increase in retirement tax,” which will affect their lives in retirement. Currently, retirement benefits are almost entirely tax-free thanks to the “retirement income deduction.” The deduction amount for retirement benefits is 400,000 yen times the number of years of service if you have worked for 20 years or less, and 8 million yen times the number of years of service x 700,000 yen if you have worked for more than 20 years. If you work for the same company for 19 years and 3 months, the deduction amount is 8 million yen (400,000 yen x 20 years), and if your retirement benefits are less than 8 million yen, no tax will be levied. If this deduction is reduced, take-home pay will be significantly reduced.” (Economic Journalist) In fact, this is not the first time that “increasing taxes on retirement benefits” has been brought up on the table. This was also indicated in the Government Tax Commission’s mid-term report in June 2023. In addition to retirement pay, there were also taxation of commuting allowances and reviews of employment income deductions and dependent deductions, all of which were measures that seemed to target salaried workers and were heavily criticized as a “tax increase on salaried workers,” leading Prime Minister Kishida to hastily deny their implementation. Read more below
“There’s no hope for this,” says Prime Minister Ishiba. There are signs of a return of the “retirement tax hike” and angry voices on social media… Is this the birth of the second generation of “tax hike glasses”?
If the opposition party opposes it, it won’t pass. The betraying opposition party will be wiped out in the House of Councillors election. Good thing the LDP is no longer a dictatorship.
>>11 The reason Ishiba has survived this long is because he is a clean politician who has not let the Ministry of Finance get hold of any crucial scandals, and he is not careless like Tamaki. I’m just in poor health.
“Finance bureaucrats should be banished! Now is the time to save the weak and blow away hereditary politics! Takuro Morinaga x Moe Fukada no. 166” https: //youtu.be/ortjnxmxagg?si=gdzviss6ibz6dgm0 Political and economic platform.
That’s why Ishiba is just a decoration. He’s the kind of guy who, the moment he became prime minister, reversed what he’d been saying for decades, easily succumbed to pressure from within his party, and dissolved the party right away. He’s like a red bekko, waving his neck as a shield to the bigwigs in order to hold on to his position as prime minister. This guy’s stock really plummeted after he became prime minister. He became prime minister to stave off elections, but he lost them too. He’s a prime minister who benefits no one.
The Liberal Democratic Party government is continuing to raise taxes. That has been obvious for a long time. It’s the stupid people’s own fault that they didn’t even bother to vote and we couldn’t change the government.
Retirement benefits are also income, so the current preferential tax system is wrong. For over 10 years now, the government has been advising people to abandon the retirement benefit system and switch to defined contribution pensions.
Now that there is talk of the 1.03 million yen wall, I haven’t said anything, but last year the government tax commission was trying to reduce payroll deductions, so if they get the chance they’ll raise taxes.
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