Gov't eyes reworking 'hometown tax' to curb use of gifts


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"The system was implemented in 2008 as a way to redistribute tax income to cash-strapped municipalities."

Isn't this one of the functions of a central government? Why is it being done on an ad-hoc basis that opens it up to potential abuse?

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12 municipalities have said they do not plan to change their gifting practices.

There is a spelling mistake in this statement. The second last word should be, grafting not gifting.

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Hopefully they don't gut the program as I do love taking advantage of it and it seems to be win-win but I do agree that at the very least the product should have something to do with the region. It just seems wrong to see things like computers and iPads as gifts. Also maybe create rules about marketing so they don't spend too much tax money trying to promote their gifts, just have everything available on the site or a catalog or something that's fair to all and have the users find them on their own instead of wasting it on train adverts and however else it is used by some towns.

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Rather than making "donations", what this system does is allow people to pay some of their local taxes to an authority where they do not live, in most cases for gifts.

I read that the third biggest loser is Setagaya-ku in Tokyo. Setagaya is known for one of the longest waiting lists for daycare. This tax redirection scheme costs the authority over 10 million USD a year.

Furusato nouzei is a nice earner for my town, but it strikes me as ridiculous. As Madden says some of the gifts people get have no connection to the authority providing them. I bet some of the gifts go straight onto Yahoo Auctions, giving people a tax cut for not paying to the local authority providing them services.

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I LOVE furosato nozei, it is the ONE way I can get SOMETHING for some of my taxes!!!

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I say keep this program.

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