politics

Kishida plans income tax cut for households and corporate tax breaks

42 Comments
By MARI YAMAGUCHI

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42 Comments
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A lower consumption tax rate, or even better, a repeal of the consumption tax, would be much more beneficial. And I have been in Japan long enough to remember when there was no consumption tax here.

20 ( +22 / -2 )

No mention of consumption tax or increase interest rate, as usual. Farce

-4 ( +10 / -14 )

Lowering the consumption tax is what needs to be done, since it’s on, um, consumption, and consumers would experience the relief from inflation every time they purchases a product or service.

This move is more about politics than economics.

“He also pledged to introduce corporate tax incentives to promote wage increases.”

They tried that already a few years ago. It hasn’t worked.

6 ( +13 / -7 )

This is exactly what Abe promised a decade ago. The income tax break added up to a few thousand yen a year and corporations picketed their tax cuts instead of passing them on to workers as salary increases. Just the same old meaningless rubbish from the LDP cronies.

4 ( +18 / -14 )

Why corporate tax breaks? Corporations raised prices beyond any excuses about things like sanctions on Russia and the inflation they created themselves, and they raked in a mint. They don't need tax breaks. They need to be made to raise salaries.

12 ( +16 / -4 )

Sorry, Mr. Kishida, but our bosses are just going to pocket that money.

-4 ( +11 / -15 )

No details in the article, and I presume no details were given, so this is posturing and little else.

I wonder what this guys salary is? I'd bet it is more than most of his constituents.

Cut the consumption tax, and provide a decent interest rate on savings.

6 ( +8 / -2 )

Short on details. I will believe it when I see it. Better be substantial.

11 ( +12 / -1 )

Total vote buy, it's only words and won't happen.

-1 ( +9 / -10 )

Tax cuts for households. How much Kishida? Care to share?

Corporate tax breaks??? WHY?

3 ( +8 / -5 )

*He said he is determined to help people ride out the impact of soaring prices for food, utilities and other costs that have exceeded their salary increases*

”Ride out” implies that this difficult situation will eventually pass.

Will the percentage of income spent on food and utilities ever return to what it once was? That certainly appears doubtful at the moment.

4 ( +5 / -1 )

income tax cut for households

Yes

tax breaks for companies

No

And I agree with the abolishment or reduction of consumption taxes so that consumers may have more purchasing power. This will allow more people to spend, businesses will begin to profit, a win-win. For companies reaping in on the profit and simply hording and not passing it along to workers or investing on purposeful projects, tax them higher. For failing businesses, well, they got themselves there so you don't really need to give them a tax break unless the reason they are failing is something beyond their control.

If companies want to invest in new projects, facilities, tools, employees, or anything related to the latter, why do they deserve a tax break to fund such projects? A proper business plan or innovative idea would surely obtain enough investment on its own and wouldn't need a tax break.

3 ( +4 / -1 )

It’s not Rocket Science.

Just cut consumption tax on basic food stuffs, and baby/kids goods up to age 14 years.

6 ( +7 / -1 )

That's of no use, as most people, those also most affected by inflation or other high prices, even aren't in the active and fulltime workforce or among business owners, and therefore aren't subject to high income tax, for example all toddlers, schoolchildren, seniors and part-timers. In addition, of course the aging society and de-industrializing economy, already in longterm accumulated debts, needs the taxes for several tasks, from children and senior care, repairs of aged infrastructure like streets, bridges, tunnels, then of course the planned subsidies for innovating branches like chip industry ,and up to highly increased future defense costs. So those lower taxes are in best case useless now and only postponed, but to be collected later in a much greater dimension. Coming quickly up with an idea is nice, but first thinking about possible consequences might have been better.

1 ( +1 / -0 )

Finally Kishi chan is doing something useful

-9 ( +0 / -9 )

Kishida plans income tax cut

Will he also cut the crap?

We'll believe it when we see it, KISH.

-4 ( +3 / -7 )

Committed to this bubble. The higher the mountain, the deeper the valley

-1 ( +2 / -3 )

I will probably get 2% relief then they’ll raise the sales tax to 12%. As the say in Russia, the government always wins.

0 ( +5 / -5 )

Having a sales tax on food has always struck me as outrageous. Get rid of that and things might improve a bit for the average person

7 ( +9 / -2 )

When I came here there was no consumption tax. It’s ruining what was a great place to live.

10 ( +11 / -1 )

He will raise the amount at which workers start to pay income tax currently( ¥1,300,000?) maybe up to 1,800,000. This will also encourage housewives to work or work longer hours. Consumption tax won't be changed as that would benefit everyone. He only wants to help the poorest. Or should I say, wants to be seen to be helping, just before an election.

4 ( +5 / -1 )

What a farce just a ploy to get re-elected.

-2 ( +4 / -6 )

That fist is only half clenched-he ain’t fooling me!

-3 ( +3 / -6 )

"Seeking growth at the cost of the future generations", which has been repeatedly brought up in Japan, comes to my mind once again. It's due to the fiscal deficits which are already monstrous and could get worse because of the planned tax cut. In short, the "bold economic measures" lack the long term perspective. Where is the "new capitalism" that Kishida launched at the beginning of his term?

0 ( +2 / -2 )

"Seeking growth at the cost of the future generations"

I wonder if this is true because most of the government debt is owned by the government or elderly Japanese who have the vast majority of wealth.

-3 ( +0 / -3 )

The fact that he's targeting income tax rather than the consumption tax makes me believe that he'll do the classic bait and switch and cut lower bands like one percent while the upper brackets get higher cuts or completely abolished. Also, since this will be funded by none other than more money printing, expect your JPY to fall further in value.

1 ( +4 / -3 )

Evidence that he is planning to call an election in 5...4...3...

-2 ( +0 / -2 )

Looks like the media calling this guy "tax-hike glasses" prime-minister, works!

-3 ( +0 / -3 )

I would suggest lowering the income tax substantially and raising the consumption tax. Just throwing numbers say drop income tax buy say 20% but raise consumption tax by 10%, that way foreign tourists are helping subsidize the difference

-5 ( +0 / -5 )

@onlooke

"Seeking growth at the cost of the future generations", which has been repeatedly brought up in Japan, comes to my mind once again. It's due to the fiscal deficits which are already monstrous and could get worse because of the planned tax cut. In short, the "bold economic measures" lack the long term perspective

Exactly. Japan has now the second highest public debt GDP ratio in the world after Venezuela!

Debt used to be financed at 0% but is it not the case anymore. Japan must now pay 0.87 % when it borrows for 10 years.

There was this idea that the BOJ could control interest rates by buying the bond issued by the government with money it printed without limit. This is over because it is now inflationary .

The solution is not to increase even more the public debt which will be a huge burden for future generations but to reduce inflation which is equivalent to a consumption tax cut. The BOJ can perfectly do that with a suitable monetary policy that will help strengthen the JPY.

0 ( +0 / -0 )

Basically bend over. Again.

-1 ( +1 / -2 )

Japan must now pay 0.87 % when it borrows for 10 years.

Who is that money paid to? And what do the recipients do with their newly received yen cash?

-1 ( +0 / -1 )

Bring the minimum wage to western levels. As examples Australia is $22 and hour that about 90%. This minimum wage mob isn’t going to horde it away. It go straight back into the local system EG paying of the mortgage quicker , better education for the family. A car or a better car etc. they not going to spend on overseas holidays. Corporate tax cut straight into excu bonuses and big end of town’s pocket into overseas tax havens. It will just drag out inflation longer.

2 ( +2 / -0 )

As someone on pretty unspectacular pay, income tax is the least of my worries. I waste more on the 3 mandatory charges (health, pension, residential tax) than I do on rent. So to get by, I take on more work....and what happens when you do that? The following year you get screwed even further on health/residential tax, not to mention the fact that pension fees are going up next April too. It's all very well saying "put money aside for the upcoming taxes", but that's pretty hard to do with the extortionate costs of even basic food and household goods.

2 ( +2 / -0 )

Cut taxes and increase military expenditure. It sound like Reaganomics. What will the result be? Even more inflation, the aim of Abenomics?

What is hitting people hardest is the weak yen as so much necessary for daily life is imported. When the yen moves from the 100 to the 150 yen to the dollar increasing wages from 1,000 to 1,100 per hour will not solve the problem for those at the low end of the pay scale, and I can't imagine 10% pay increases happening anytime soon.

0 ( +0 / -0 )

Instead of additional tax breaks for corporations, how about making those corporations ineligible for current breaks should they refuse to increase salaries?

0 ( +0 / -0 )

same story again.

as taxpayer and father I want to know EXACTLY what income tax discounts?how much we get more at our hands?

stop talk carp!

-1 ( +0 / -1 )

Corporate tax breaks to increase investments.........well the investments they will make, will go straight into their own pockets.

0 ( +0 / -0 )

Nice to see Kishida bowing before his owners and giving them more money.............who would have thought?

1 ( +1 / -0 )

In an artical on another site stated that there would be a 40,000 yen tax cut for most and 70,000 yen cut for the elderly and low-income people.

0 ( +0 / -0 )

Everyone knows this is not feasible, cheap talks to boost his own political popularity !

-1 ( +0 / -1 )

Everyone knows this is not feasible,

No everybody does not “know” this. It’s your take. I believe you’re a supporter of the CCP are you not? Maybe the CCP think it’s not feasible.

0 ( +1 / -1 )

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