Gov't eyes ¥30,000 cash handouts to stimulate Japan's economy

The government will draw a supplementary budget to finance the stimulus measure

How are all those promises of "fiscal consolidation" going, folks?

The government is considering offering one-time support payments of 30,000 yen to low-income households exempt from resident tax as part of a stimulus package for Japan's economy, sources close to the matter said Wednesday.

For those exempt, meaning around 1 million yen yearly income.

While the many making 2 mil in full time jobs have monthly residence, pension, social insurance taxes 30000 yen or more.

The LDP is just toying with the working population of Japan

A case of " looking to be doing something without actually doing anything". Well done LDP you did it again.

From one PM to another just love to give out cash.

https://www.aljazeera.com/economy/2020/4/16/japans-abe-to-give-blanket-cash-handouts-in-coronavirus-stimulus

https://www.japantimes.co.jp/news/2009/01/28/national/extra-budget-with-cash-handouts-passed/

Full of imagination this lot....cash handout. LOL

A one time payout is going to help, exactly ONE FREAKING TIME!

Better the money be spent on helping these people get gainful employment that pays them a living wage!

Any new ideas? Maybe something that would benefit most of the lower /middle class...Nash. Just same old LDP rinse. Hopefully with opposition holding Ishiba minority govt together they are finally in position to eventually push through raising the tax free threshold for majority of the population. Now that would be something helpful.

I’d gladly take it, but it’s not enough to use on anything significant, so it’ll just get diverted to stock market.

I don’t see how that helps the Japanese evonomy??

Taxation and inflation grind the wage earner down. One-offs like these are merely publicity stunts.

Yes!! Keep it coming!!

This wont change the rising of child poverty!

Cash handouts should be given to all residents in Japan regardless of their income levels just like PM Abe did during the COVID pandemic.

Pretty sure all those foreigner 'influencers', 'creators', 'youtubers' and 'twitch streamers' will run with open arms to grab even 30,000 yen because they spent all that money on Halloween costumes and then crying in their lemon sours and other alcohol when the police told them to keep moving in Shibuya and the public gave less than 0 percent about their middle aged selves running around like children in their costumes.

They are the ones doing the worst paying, most exploitative 'Engrish teaching jobs' so 30,000 is like the lottery to them.

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Ishiba - a leader of brilliance !!!!!!

Indeed, 30,000 YEN is REALLY going to get the economy rolling !!!

[Barely cover groceries for a week!- Silly man]

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Low income vote as they have more time. There are benefits to it.

At least it's cash, and not something linked to My Number cards or some hoop-jumping smartphone payment app that was developed with taxpayer money.

Idiots. Just the plain old dinosaurs doing dinosaurs things.

History shows that cash payments to low income folks is often spent on vices, sad but true.

Just a 1 off payment? Well I guess all the bars in Japan will be happy

History shows that cash payments to low income folks is often spent on vices, sad but true.

I can hardly wait to receive this windfall and make a beeline for Kabukicho.

Yes exactly please contribute to further inflation. Morons.

this is going to do more damage to lu income people than help.

To stimulate the economy, you need to increase production. A cash handout doesn't increase production. What is needed is to lower taxes so that people can keep more of the money they earn. They need an incentive not a freebie.

Government eyes ¥30,000 ( of our tax ) handouts to sweeten the voters after taking a hit in the election ...there fixed it for you !

This is mostly old folks. It’s about one in ten up to 50, 20% of folks in their 60s and rises to about 45% of folks in their 80s. In terms of households, about one in four, but strongly biased toward the elderly.

https://news.yahoo.co.jp/articles/65bea4f2d9b02c2a83f6c4e98c961a54cbec82f1?page=3#:~:text=%E3%83%BB30%E6%AD%B3%E4%BB%A3%3A9.2%EF%BC%85,%E6%A7%98%E5%AD%90%E3%81%8C%E8%A6%8B%E5%8F%97%E3%81%91%E3%82%89%E3%82%8C%E3%81%BE%E3%81%99%E3%80%82

This is a roundabout way of raising the pension in response to inflation.

To qualify as 非課税 as a non-pensioner, you probably need to be divorced (or pretend divorced) or self-employed. Both groups can manipulate their incomes as stated on paper. For folks with kids, there are much bigger benefits than this. Free or near free hoikuen is the massive one and is not limited to 非課税. In Western countries where its not subsidized, people pay two-three million yen per child per year, an unimaginable amount for Japanese.

That same amount monthly would help, but a one-time payment will have a miniscule effect.

I’d gladly take it, but it’s not enough to use on anything significant, so it’ll just get diverted to stock market.

If you are invested in the stock market and are making more than 1 million yen per year, you will not get it.

Reread the article about just who is eligible!

How about making K-12 education free investing in the future instead of these senseless cash handouts! That would incentivize families who wish to have (additional) children but find the idea too much of a financial burden. But that would require a complex approach to a problem the government isn't interested in addressing as it would require an effort.

While I will take whatever money they are handing out... I cannot help but feel it will do nothing for the economy as a whole....

How about making K-12 education free investing in the future instead of these senseless cash handouts!

In some prefectures it already is, some even subsidize school lunches for all children from ES through JHS as well.

Not to mention that medical costs are refundable as well.

The government has gotten better, little by little, at making it easier for parents to raise their children. It's the single parent families that need more viable assistance than they are getting now.

While I will take whatever money they are handing out... I cannot help but feel it will do nothing for the economy as a whole....

I sincerely hope that you are not one that will receive any of this proposed handout. If you are actually eligible, it means that you are already forcing others to subsidize your living here, because you dont make enough money to support yourself and need taxpayer money to exist!

This "handout" is for the poorest of the poor here, and I hope no foreigner living here in Japan legally or otherwise, needs to, or is, qualified to receive it.

In a perfect world NO ONE should be living in poverty here! Because this handout is for those below the poverty line!

How about making K-12 education free?

If k-12 means compulsory education, it is pretty much free if you have an average income. Private SHS included may still get you on "entrance fees", "entrance examination fees" etc. but biggest payment, tuition itself, will likely be covered by the government if you are on under six or seven million in inaka. Which is pretty much everyone.

Most of this money will likely go on old people living alone. If all they have is kokumin nenkin paid in for say 30 years, their entire income will be about 60,000 yen a month.

BertieWoosterToday  09:07 am JST

What is needed is to lower taxes

If that is done, who is gonna appease the good ol' US with stupid spendings on military?

this is about bribing of electorate before next elections.

if they wanted to something real could lower VAT to say 5% or abolish VAT for basic food and goods like milk,rice,tea,vegetables,japanese produced fish and meat...they will NEVER LEARN

btw these so called "handouts" will be covered from japanese taxpayers money as gov make no business so whole their income coming from our taxes.

question-do we pay/still/low income taxes here and will they increase that for their lavish "spending"?

Yes, one can complain everything here, and it's often right, but anyway, every single yen paid back to citizens should be very much welcomed, even if only a few or the wrong group receives it, otherwise it is ALL completely waisted for THEIR own intentions or projects.

The Yahoo link I posted says that 66% of this will go to people over 70. Some over 70s may have vices and "go to Kabukicho" but I doubt it is very many. It will be a long way from Akita, Shimane, Tokushima etc. where such people live. Half of them have probably never left their prefecture in the last twenty years.

High prices affect everyone, so I can see a case for making this universal. Charging consumption tax on food also seems unfair compared to overseas. I don't like paying it on my noodles and then seeing foreigners not pay it on the twenty Iphones and Chanel bags they've bought for the resale market.

this is about bribing of electorate before next elections.

FYI, the "elections" are already over by a couple of weeks now. The next one could be years away, and this long forgotten.

In effect, this proposed handout has ZERO to do with elections.

One of the biggest arguments for high prices and price increases is the costs of logistics and moving freight from the supplier to the buyer due to fuel costs. How much is the government getting every time you go to the gasoline stand and fill up your car?

 

ガソリン税 (Gasoline Tax per litre) 53.8

石油石炭税 (Oil and Coal tax per litre) 2.8 yen

To top it all off the 消費税 Consumption Tax per litre (10% of the cost per litre)

 

In Ishikawa prefecture the cost of Gasoline per litre varies. I live in Oku Noto and the Gas is the Most expensive in the prefecture here at 181 per litre but in Kahoku city close to Kanazawa it costs about 164 at the Kahoku Aion.

 

How much is the government making every time I fill up my gas tank here in Noto Cho in Oku Noto area.  

 

My K car takes about 21 litres of Gas and my car is fule efficient.

 

21 x 181 = 3,801 Yen

 

How much Gas tax is actually in that 181 Yen per litre? Here is how to calculate it.

 

53.8 + 2.8 = 56.6 yen per liter of Gas just for the Gas tax.

181 x 10% = 18.1 yen

56.6 + 18.1 = 74.7 yen in Gas tax per litre. Lets make it even to 74 yen per litre.

 

How much of that 3,801 yen is tax?

74 x 21 = 1,554

I am paying 1,554 yen to the government every time I get gas. The actual cost of gasoline is only 2,247 yen.

 

Lets say I go to the Gas station once a week to get gas which many Japanese do some go to the Gas Stand more often. Lets see how much the Japanese government is making if you go to the Gas stand one a week. There are 52 weeks in a year.

 

1,554 x 52 = 80,808 yen per year in gasoline tax a lone. My car is a simple K car and not a 乗用車 (regular car). Not a K car.

 

Lets do the same for a regular car at an average price of 165 yen pre litre.

Regular car takes about 30 litres of Gas.

53.8 + 2.8+ 16.5= 73.1 yen per litre of Gas

 

73.1 x 30 = 1,633 Yen

1,633 x 52 = 84,916 yen per year.

 

On top of the Gasoline tax if you own a regular car there are a lot more taxes taken out per year. The Car tax is about 60,000 yen per year. On a K car is between 7,000 yen and 12,000 yen much more cost efficient.

 

Gas Tax per year and the Car tax per year together

84,916 + 60,000 = 144,916 yen per year in taxes just for your car. On top of this there is also 車検 (Car inspection which the government gets a cut of as well)

 

Just to own a car and use it your paying an extra 144,916 if you own a regular car to the government. For a K car 90,808. I didn’t even calculate the price of Car inspection which the government does get a cut of.

 

Getting back to the argument of price increase due to logistics. Just imgine how much it costs to fill up a truck with a tank of Gas and the absolute Huge amount the Government is making on them per year. Let a lone the cost of the car tax on a truck.

 

It looks like the government, with its high taxes on Gasoline, Car tax, and car inspection tax, is also part of the cause of the high costs of inflation on food and products. Instead of giving these ridiculous cash handouts of 30,000 yen do something that will ease the problem entirely and help the consumer. Let the consumer can keep that 144,916 yen or 90,808 money where its supposed to be in people banks for savings accounts.

 

Do this by the following:

Get rid of the Gas 53.8 yen gas tax. Make it 0.

Keep the 2.8 Oil and coal tax for the environment.

Get rid of the ridiculous 10% consumption tax. (Which your making over and over and over and over again from the producer, to the supplier, to the transporter, to the store, and to the consumer).

 

Note my home countries gas tax is higher however with the take home income of the average Japanese family this tax is truly painful at the Gasoline stand and at the check out counter at the Supermarket.

Woo! Hoo! A one-off payment of 300 bucks! That’s only about fifteen minutes in a pachinko hall.

Why not pay subsidies towards energy bills? Why not make it food vouchers? Why bother at all?

To get to the root of why the LDP operates the way it does you need to go back and confirm how they were founded by a non-Japanese entity who reinstated war criminals to power in the post war era.

Will only continue the evil cycle. You need some structural reforms, like continued wage growth etc. Just handing out cash money as a mean of monetary easing will only add to the ballooning debt. And we've seen that spending has stayed sluggish even though cash handouts has been performed.

My economic professor (in Japan) really does not understand this strategy. Now Japan is spending 25-30% of the government's annual budget to pay off interests on their bonds.

The cash handouts would come as rising energy and other costs have been affecting Japanese households.

Then why not try to resolve the rising energy costs instead? Giving Taro-san 30,000 yen now won't help him pay for it next year.

Japan seems to have missed the chapter in the economic textbooks about the multiplier effect.

Not there, Our Gov halted handouts after covid, they could not trace where the bucks were going. Concentration of gov redistributions (i.e public tax monies) was concentrated to electric, those who used the least proportionally gained more, I admired it (I do not use a.c). As for gas costs. Sure running a car cost bucks regardless of how much it guzzles, I just checked my last partial refill, HK only serves 98oct, forecourt sizes restrict hence u/g tanks, tax equiv yen ~121/litre. it is just a fact. I have a liking for 5litre V8's. Sorry Kei car users, tax/ litre cannot adjust for economy saving, electric use can.

yeah 30,000 yen will last about.... 4 days...

藤原Today  10:30 am JST

HUH?!!

The government will draw a supplementary budget to finance the stimulus measure

Hmm they no longer have a majority in the Lower house, I imagine anything that would make LDP look even remotely "good" would have a hard time getting enough votes to pass and this is one of those things.

Opposition parties should vote NO, Stimulus can come after the upper house elections once the opposition party can secure enough members to make sure new bills reach a vote and LDP can't block changes.

if you want to staminate the economy treat your workers like humans. give them days off, let them go home before its dark out once in a while, stop price gouging.

if people are happy at home they more kids that stimulates the economy.

I mean, while it's not a solution as most here noticed, as long as it really reaches those in need (and only those in need), I don't mind my tax money going there. It's better than nothing. I just hope (no I don't, I know better by now) that that's just a small bandaid before they come up with a long term plan how to help those people. Part time contracts are probably the most urgent to look at.

Putting a band aid on a ruptured artery?

Wrong target. They should be supporting the working populations.

A lot of these people are not working because they are already extremely wealthy and does not need to work or working a cash based job that is not paying taxes.

Pointless gesture.

The rising energy costs are because of government policies.

I will finally be able to buy that bottle of olive oil I have had my eye on.

I wish they would allow foreigners to opt out national insurance and use private insurance.

Cash handouts are a sign of failed economic policies not a good faith gesture. Doing it multiple times within a handful of years screams that even more. Households won’t use the extra money to “stimulate the economy” they save and use it for living expenses because they have to. Japan let the energy companies rise prices by double digits, other dailies also increase prices like the post office, and so on without caps or stringent regulation. Even in the midst of the electricity and gas companies being investigated for price fixing because of course they did.

3man isn’t making any low income house more secure. It just reminds them how on the edge they are and makes those barely above the cutoff envious.

To actual think that if a person who can qualify for this handout. How would a person on such an income be able to afford a child ?? That part of this handout is just a cruel joke.

Given to the poor by a bunch of tax leeches who on top of their monthly salaries also get ¥1,000,000 a month for expensive that they need to provide receipts for, ¥1,000,000 a month they can spend anyway tbey want.

Like others have pointed out, if the political swine cared at all they would lower taxes on certain essential items. They don’t, which is why money again will be taken from our pockets and moved around for a short time and placed in their (government’s) pockets. This is just another shell game from the same old group of tortoises.

Reading from the article it’s for the low paid and exempt from resident tax. Most people on JT will be excluded.

a waste of money that will mostly be spent on frivolous shopping and booze.

There is a reason the poor stay poor.

yeah 30,000 yen will last about.... 4 days...

66% of recipients are over 70. Many will be on under 80,000 yen a month which is the most you can get from kokumin nenkin. After that will be what they have hidden under the futon.

Will be gratefully received by those in need.

For every social problem there is some effective solutions that require careful planning, complicated execution and costly follow up; or cash handouts that solve nothing.

On average people spend 10,000 yen / week on foods and drinks alone up from about 6 or 7,000 before inflation.

The government need to encourage employers to raise salaries at lease by half of these increases or reduce sales tax and or eliminate resident tax.

Also stop sending cash abroad in support of wars.

WoodyLee

On average people spend 10,000 yen / week on foods and drinks alone up from about 6 or 7,000 before inflation.

Where are you getting that figure from"? We spend as a couple ¥5,000/day.

Wallace

"Where are you getting that figure from"? We spend as a couple ¥5,000/day."

I am talking about grocery shopping and not including eating out, depending on where you live we go shopping once a week and we spend about 10,000 / week +/- by the end of the week it's all CONSUMED, LOL

Seems pretty chinzy compared to the Yen 100,000 that was given out to all residents of Japan during the Covid pandemic under PM Shinzo Abe. Really wonder if a one time Yen 30,000 payment is going to do anything for the economy.

Raise Minimum Wage Level To 200 Per Hour There Will B No Low Income House Holds in Japan Teaching Man How To Fish Is The Best Policy

Only 30000 yen, it can be mere supplement for personal measures against cold weather during winter.

on the other hand, tax revenue is largest ever, large corporations who corporation taxes had been reduced last decades have saved up about 600 trillions.

30,000¥ to less than 1% to stimulate the economy… I wonder what they are smoking up there!!!

WoodyLee

Wallace

"Where are you getting that figure from"? We spend as a couple ¥5,000/day."

I am talking about grocery shopping and not including eating out, depending on where you live we go shopping once a week and we spend about 10,000 / week +/- by the end of the week it's all CONSUMED, LOL

You must be eating out nearly every night.

I will accept the money…and use it to pay down taxes and health insurance premiums. Another own goal by the government.

On average people spend 10,000 yen / week on foods and drinks alone up from about 6 or 7,000 before inflation.

Per person, that sounds reasonable. I guess we're about 150,000 a month for four, more if we go somewhere and end up eating out. And yes, up about 50% compared to three years ago.

Won't do a thing so long as inflation persists, wages don't SERIOUSLY go up, and products keep skyrocketing in cost. They did this before -- a one-time ¥10,000 payment to every resident in Japan, after canceling the family tax credit. How'd that go? Well, just look at the exponential decline in birthrate.

Keep your cash.

Put forward policies to stop inflation instead.