Ishiba eyes utility bill subsidies, cash handouts as fresh stimulus

Aren’t these repeated stimulus packages (basically handing out money to everybody!) what got us in this inflationary mess in the first place?

cash handouts to low-income households under the serious impact of higher food and energy prices,

Yes, and if you keep doing this plus the utility bill subsidies, Japan's employers will never feel the need to give pay raises. You're only further weakening Japan's already-pathetic wage-inflation cycle. The only thing stingy bosses respond to is pressure.

includes subsidies for utility bills and cash handouts to low-income households,

the cash subsidies could be used by those receiving them for any reason, including playing Pachinko, why not directly subsidize the energy retrofitting of homes and buildings, that way reformers could earn money, which would kick taxes back to the government, and the building owner might be able to pay less for utilities. The main reason that probably won't happen is the corporations and their share holders profiting most from maintaining centralized control over the utilities would not get richer and more powerful. Japan Inc. have known for decades the country has to rely on imports for energy needs, time for Japan Inc. to put country first, and not Japan Inc.'s legacy control

At the forefront of the DPP's policy push is boosting incomes amid rising prices, including by raising the current 1.03 million yen threshold for people to start paying taxes.

Criminally low, should be at 3 million or so, which is still much lower than in many other countries.

There are huge numbers of people making 2 mil or even less who are faced with paying city, pension, social insurance taxes at the end of the month from meager take home pay and having to choose between groceries and taxes.

The tax regime in Japan is highly regressive, and has gotten worse with Abenomics.

What is the different from previous Govt?

Same, same! Where is the new fresh thinking?

Tax threshold should be raised, but by how much?

Old thinking just continues until Japan sinks under the waves.

new face old dance and old music.

as expected.

instead of abolishing VAT for basic goods and food STEALING my taxes for low income pachinko addicts and ozeki cup drinkers...?

NOT ENOUGH,

Drop Sales Tax back to 7 or 5% and stop supplying wars with cash.

Raising the threshold is a good idea but the government should also be raising the minimum amount an employer can pay an overseas workers also as many are now considered low income workers. It used to be 250,000 yen was the minimum someone could get a visa. It should be 300,000 or 350,000 or more for all these companies wanting to hire foreigners. A whole review is needed on thresholds and what they mean to the people involved. This way the amount of low income can be reduced and vis holders not putting a strain on the government.

There’s nothing wrong utility bill subsidies and cash handouts for low-income households. People will have more disposable income and that will increase consumption and increase the countries GDP. The only problem is how low your income has to be to qualify as a low-income household.

Sales Tax should be put on the Ballot for voters to decide and not the Bureaucrats, it is the only fair system in any democracy.

Right on! I could use some poor people money. Hope the handout to us is a biggie!

But the handouts have to be paid to everyone, remember this is Japan, where even the rich get the handouts because it wouldn't be fair and equitable to give it to some and not all! That thinking drives me crazy. I know people will argue about what income level it should be cut off at, but not here.

Instead of subsidizing energy prices just do the logical thing and import cheap Russian oil and gas directly from Russia instead of buying Russian oil via other countries.

Just as the DPP proposed lower the higher the tax wall from 103 to 178. Lower the gas tax or get rid of the consumption tax! This will put food on families tables and extra money in their pockets where their hard earned money should go!

Instead of cash handouts, issue food coupons.

Mr Kipling

Instead of subsidizing energy prices just do the logical thing and import cheap Russian oil and gas directly from Russia instead of buying Russian oil via other countries.

Japan buys Russian gas.

"Russia accounts for 9%. According to preliminary data, Japan shipped 833,000 metric tons of LNG from Russia last month — up 42.5% from December 2022."

Abolish the sales tax on foods and other essential items.

Stupid decisions by stupid government

Stop causing inflation!!!

oh good. reruns..........

"it didn't work then, but let's do exactly the SAME thing one more time, and expect to get different results."

-any of these LDP morons

Wallace..

Japan buys Russian gas.

I know, it should be buying a lot more. It also buys Russian gas and oil that has passed through other countries and is not classed as "Russian" gas. The price is also not Russian but much more expensive. Somehow Japan paying more for Russian gas and oil is supposed to help Ukraine.

An across the board tax cut would be better.

"Make Japan Poor Again" isn't exactly an inspiring policy for a country that is drowning in debt. Japan needs a leader like Trump who can offer people hope.

It's not only low-income earners who are suffering.

Nothing against it, but this will further boost the Inflation and the devaluation of the currency.

Since those money are for our taxes, expect further increase of them.

The middle class in Japan is on the way of extinction.

@Mr. Kipling, it's basically te same as when they announced an embargo on NK. There was a documentary that even sea products from NK pass thru China and on goes to the supermarkets in Japan. What a weird and profitable business acumen. Economic embargo is no embargo at all.

And for the topic, I'm not at all happy when dole outs are in the the making because months after they'll probably up the taxes, social security contributions and even retirement age. But somehow I welcome it as a band aide relief. Sigh!

This is waste of time and a PR stunt .

Do something new and worthwhile instead of these pathetic nonsensical one off payments .

Drop the consumption tax to 5 % and stop sending money to Ukraine.

Cash handouts don't reach at all or in best case partially reach the officially 'poor' or the real poor who are under every radar. It would need a detailed check if someone is eligible for that, then would have to be handed out to the real showing up person and finally it would be necessary to check if that person really can keep and use the money or someone else in background takes it away immediately by physical or moral pressure. That is all impossible or too difficult to check. So this measure is not working and will make the poor even poorer in relation to before handouts.

10000 yen handouts don't work anymore. Try 100000 yen.

Well for starters how about making more butter in Japan instead of ripping Japanese people off and forcing them to buy "gourmet import butter from France" that costs 10 times as much to import. It's a scam and the Government is getting richer and richer while the people suffer.

Hey guys, i know, lets inflate our way out of inflation.

I agree with most of the posters above. Abolish the sales tax first. That will help people across the income spectrum.

Well for starters how about making more butter in Japan instead of ripping Japanese people off and forcing them to buy "gourmet import butter from France" that costs 10 times as much to import. It's a scam and the Government is getting richer and richer while the people suffer.

They do make butter in Japan. The stuff I buy is made in Hokkaido and is available in pretty much every supermarket and convenience store.

I like the high-end department stores as much as the next person, but even when I go to those, nobody “forces” me to buy the expensive imported stuff.

Tax cuts do not work, Ughk gov did that and look at the mess now. I opine targeted GST adjustments are the way to go, support those in dire need. If I remember correctly GST is applied to cars, expensive home appliances jpn (essential or not?). one size does not fit all! some want more cash in their bank, they got cash already and will encourage inflation increases. cut GST on foods, essential for all, but most beneficial to those in need. Pls do not become a nanny state to those fortunate to already have means

You people calling for the removal of the 10% consumption tax do realize that consumption tax is 30% of Japan's tax revenue? Quite a big hole to fill. Any suggestions?

I just had a genius idea - instead of having people like us pay income tax on our incomes, let’s have a 1000% tax imposed on reaaally rich people only?

That way there is sure to be enough money and we’ll all be much better off?

Or perhaps we could have the central bank print as much money as we like?

May I add, economics, govs cannot gov w/o tax income, nor can public services, targetted balances on the GST, my residence place targets new cars for our only GST ( working at a1:20 yen) first (150kx20) tax +45%, (150-300kx20) +85%, (300x20-500kx20) +110% (500kx20+) +132%, naturally first owner coughs up. cost recovery spreads down to pre-owned. (70kx20) equates to 70K income to gov, ooops &70kx20.

targeted GST can produce balanced tax income w/o lining pockets

Wages need to be increased the pension system is failing what is this cash handout going to do nothing zilch and they will just bring a new tax or increase other taxes to cover the handouts all smoke and mirrors..,

So come on.... How are you going to replace the 30% of money the government raises if you remove the consumption tax. Cut spending? Borrow? Print money?

Rinse and repeat.

Those handouts are just making gain time before fall from the cliff, ie yen higher depreciation.

Good luck Japan !

Giving subsidies isn't a viable long-term solution. The issue isn't that Japanese workers are "underpaid". Japan is a major oil importer, so the much of its utility bills are out of its control.

Japan needs to focus on improving productivity so that it can better compete in the international market without destroying its currency.

The problem with Japan is that this is no longer the 1960s and other countries (Particularly in Asia) are outcompeting Japan. Japan had a major first-movers advantage with no competition. It's shocking how they're now behind other countries in terms of quality and technology.

Still waiting for the answer.?

End consumption tax means losing 30% of government revenue. How are you going to fund government spending?

???

What ya gonna do?

Mr Kipling -

Japan can just print and devalue their currency. They're already poorer than Korea now. Their GDP Per Capita is about to enter the 2-handle.

I live near the defense ministry and every day see the American salesman, smiling and grinning at the amount of money. They are making off the Japanese government with their guns and weapons. You can literally see them smirking at the amount of money they are taking out of this country.

Ishiba eyes utility bill subsidies, cash handouts as fresh stimulus

The typical goverment response everywhere. Politicians always ignore they do not have any money to "hand out", all they have is tax money to re-distribute, with a portion of that naturally disappearing in the bureaucracy. But of course, lowering taxes sounds so much more pedestrian, than an exciting "stimulus".

Abolish the sales tax first

Good taxation policy says we should have a broad tax base, and low tax rate.

Abolishing the sales tax would narrow the tax base.

Those with a propensity to buy new Mercedes Benz’s and the like would no longer pay 10% on their consumption.

Rich old folks that live off their wealth would pay no tax.

Not sure that it is a great idea for Japan. Unless you plan is to slash 70 trillion yen out of public spending each year, in which case I will back you up.