politics

Kishida asks ruling bloc to weigh income tax cut to fight inflation

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Prime Minister Fumio Kishida is considering reducing income tax in his latest push for the redistribution of economic growth.

“Redistribution” implies a wealth shift — in this case, from the taxers to the taxpayers. However, the taxers are not spending less, so they are not “redistributing” anything. They are talking about taxing us less, taking on greater debt, and billing us, the taxpayers, for that debt.

9 ( +11 / -2 )

While details need to be worked out toward the year-end, party executives said after meeting with Kishida that a tax cut will likely be effective for a year and a separate payout program will help low-income earners who are already exempt from taxation and would be otherwise left out of the loop.

The bar for exemption from tax payments in Japan is excessively low, making the system regressive.

Leaving sales taxes on essential items out of the equation, there are far too many working full time, zero hour contracts whose take home pay at the end of the month put them just a few tens of thousands of yen above that poverty line.

These are non-living wages and working poor.

5 ( +11 / -6 )

Popularist politics.

Don't cut taxes, legislate for wage increase and growth.

5 ( +9 / -4 )

Exactly! “Leaving sales taxes on essential items out of the equation” WHY? It is the only way to help the poor.

10 ( +11 / -1 )

I agree with many here. Cut consumption tax on food is a no-brainer to help struggling people.

16 ( +17 / -1 )

simply put Kishida is out of ideas to increase his low popularity, he is hopping a tax cut will help even if it isn't a substantial break at all it's the word itself "tax cut".

What an ineffective leader this miserable excuse for a politician is.

He has a multiple of actions he could take such as increasing the minimum wage and removing GST on food.

But that's not going to happen...

He is just stuck sticking with his urgenomics plan

5 ( +14 / -9 )

Reduce the pay and perks of all politicians, don't tax, food, water, and medicine, stop engaging in money draining projects like the Olympics and expos, stop buying expensive war toys, concentrate on improving infrastructure that is taking a beating from all the flooding due to climate change, and expand and improve services for children and the elderly.

12 ( +14 / -2 )

I agree with many here. Cut consumption tax on food is a no-brainer to help struggling people.

As do I. 100%. But I also think income tax should be also cut significantly as well as municipal tax. There are just so many taxes on people and its becoming more and more of a daily struggle to make ends meet

1 ( +12 / -11 )

Is this guy an IDIOT????

Raise the bank interest rates, strengthen the yen and that will cut the prices of imports, and which will bring down the costs of items in the stores. Until you stop pandering to the big companies that fill your and all those around you with yen and shore up the yen which will do a whole lot more to bring the cost of foods and other items down nothing will change. Your priorities are all wrong.

4 ( +9 / -5 )

Groceries should have never been taxed in the first place. This is the perfect opportunity to fix that egregious error.

11 ( +12 / -1 )

Reduce consumption tax on essential goods (groceries and sundries) to zero or near-zero. Drastically increase consumption tax on alcohol and cigarettes/e-cigs, and luxury goods. Remove the tax-rebate option for foreign travellers. Significantly increase income tax on single-person households making over 15 million yen a year or multi-person households making over 30 million yen a year.

7 ( +9 / -2 )

If the government is serious about helping low-income households, they should cut the consumption tax along with social security taxes (pension and health insurance). That would definitely benefit people on low incomes as they have a much higher propensity to consume.

5 ( +7 / -2 )

Just get rid of consumption tax. Japan survived perfectly well without it years ago.

9 ( +10 / -1 )

again lot of empty words.

if we are talking about reducing of oncome tax as taxpayers wants to know EXACTLY HOW-HOW MUCH ine tax will be reduced.

I need details not some "bush"

0 ( +6 / -6 )

dear LDP

make flat income tax,more you make-more stays in your pocket-more you spend-this will help to economy a lot!

lower VAT for basic food/0% or abolish it completely for all goods.

stop waste money for expo,olympics,any LDP related-business-deals.

stop fly around the world for no reason dear Kishida san.lower your carbon print and save the planet!

give money support to families with small kids/not one time payment but every month up to kids 20yo when will be adult/as every single EU country do for decades.

stop wasting money for outdated US weapons-we dont need them at all as nobody is going to attack Japan anytime soon.

stop spending money for UA,IL etc - these are not our conflicts,be in in roles of peace negotiator and try to stop wars by peace negotiations.dont take any side of conflicts you are not involved in!

stop meaningless antirussian and antichinese propaganda-this does not bring any good outcome for Japan and its against japanese own national interests.Japan needs normal relationship with its own neigbours.

abolish meaningless antirussian sanctions and restart normal business relationship,allow cheap russian oil and gas to come here and lower our living costs and expenses also this will help to your economy as well.

start to act in name of japanese national interests instead of USA ones!

-2 ( +4 / -6 )

Non-progressive income taxes benefit the rich.

make flat income tax,more you make-more stays in your pocket-more you spend-this will help to economy a lot!

0 ( +3 / -3 )

Exactly! “Leaving sales taxes on essential items out of the equation” WHY? It is the only way to help the poor.

False.

Give the poor money, that will help them far more effectively.

Imagine you have zero income, no money to spend.

Do you care if a loaf of bread costs 90 yen or 100 due to tax? If you have no money, you can’t buy it either way.

But if you are given money, then suddenly you can pay for a loaf of bread, even if tax is imposed.

So where does the money come from?

It comes from all of us paying tax on essential items - that ensures that everyone who can pay, pays a fair share.

Taking tax off would make it unfair, as only some would be bearing more than their fair share of the burden through other taxes.

-8 ( +0 / -8 )

Abolishing sales tax on foods and essential items would mean everyone benefits.

12 ( +13 / -1 )

A temporary income cut is a useless gimmick, and it won’t do anything to help inflation, indeed if they structure it in such as way that see tax revenues decrease, that means more deficit spending, more money printing, and a yet weaker yen - and thus more inflation. A vicious spiral, rather than the fantasy virtuous circle that Abenomics etc was claimed to aim for.

As another mentioned, inflation can be dealt with by dropping the failed relation policy stance, and reverting back to a stable price, strong yen policy. Just announcing such a shift would boost the yen, although to sustain it substantive policy change would also need to come later. Reforms to eliminate deficit spending are eventually required, because even record tax revenues are no where near close to covering it all.

The contradictory policies of seeking inflation and tackling inflation need to be reconciled, and obviously being clear that Japan no longer seeks price instability through inflation is the rational choice.

Non-progressive income taxes benefit the rich.

Simple, flat rate tax systems benefit the overall economy. People need to get over the idea of hammering the rich as the solution to all problems. Rich will leave, or spend money on tax advisors, and tax revenues will be pathetic, if we try to impose unfair tax burdens on them.

Japan should have a simple system where it is impossible to make income as a tax advisor, who produces nothing of value for the economy. The way to make money is by producing things of genuine value for others - and tax advice is not one of them.

Getting rid of these needless burdens on the economy is a key plank towards a once again prosperous Japan.

3 ( +4 / -1 )

Abolishing sales tax on foods and essential items would mean everyone benefits.

Not everyone. The tax man wouldn't fit a start. "Most people would benefit" more like.

1 ( +3 / -2 )

OR just raise interest rates like the rest of the world to combat inflation

-1 ( +1 / -2 )

Elvis is here

Abolishing sales tax on foods and essential items would mean everyone benefits.

> Not everyone. The tax man wouldn't fit a start. "Most people would benefit" more like.

What does "The tax man wouldn't fit a start" mean in English?

The abolition of sales taxes on food items would benefit every person. Reduction in income taxes would only apply to those paying them.

1 ( +3 / -2 )

Reduce spending.

That is the pre-requisite.

I foresee for all countries who cannoy pay their debts a crash sooner or later, and the weaker the currency is the more possible it is. Domino effect will happen.

Japan will probably be hit among the first or be the first, due to dire worsening demography like no country has ever undergone.

Without being fatalistic, the down the drain trend has been going for more than 20 years, and nothing can stop it without huge change of politics.

Kishida is only doing political window-dressing for the gulllible. It always works in Japan with no national demonstration in the streets.

-1 ( +1 / -2 )

OR just raise interest rates like the rest of the world to combat inflation

Before that even, stop printing so much money. Printing 40 trillion extra a year is not doing anything to boost yen’s value.

-1 ( +0 / -1 )

Eastman,

Bravo.

Your comments and suggestions we're awesome.

"dear LDP

make flat income tax,more you make-more stays in your pocket-more you spend-this will help to economy a lot!

lower VAT for basic food/0% or abolish it completely for all goods.

stop waste money for expo,olympics,any LDP related-business-deals.

stop fly around the world for no reason dear Kishida san.lower your carbon print and save the planet!

give money support to families with small kids/not one time payment but every month up to kids 20yo when will be adult/as every single EU country do for decades.

stop wasting money for outdated US weapons-we dont need them at all as nobody is going to attack Japan anytime soon.

stop spending money for UA,IL etc - these are not our conflicts,be in in roles of peace negotiator and try to stop wars by peace negotiations.dont take any side of conflicts you are not involved in!

stop meaningless antirussian and antichinese propaganda-this does not bring any good outcome for Japan and its against japanese own national interests.Japan needs normal relationship with its own neigbours.

abolish meaningless antirussian sanctions and restart normal business relationship,allow cheap russian oil and gas to come here and lower our living costs and expenses also this will help to your economy as well.

start to act in name of japanese national interests instead of USA ones!"

-4 ( +1 / -5 )

fxgai

It comes from all of us paying tax on essential items - that ensures that everyone who can pay, pays a fair share.

Taking tax off would make it unfair, as only some would be bearing more than their fair share of the burden through other taxes.

Sales tax hurts the poor and benefits the rich, as it's the same rate for all, regardless of income. Just like a flat income tax.

Simple, flat rate tax systems benefit the overall economy. People need to get over the idea of hammering the rich as the solution to all problems. Rich will leave, or spend money on tax advisors, and tax revenues will be pathetic, if we try to impose unfair tax burdens on them.

It's not "hammering the rich". It's making them pay their fair share. It worked rather well in the US for decades. There were huge infrastructure programs, free universities, a robust middle class. Then, the Reagan administration started lowering taxes for the rich, along with union busting, and robbing from Social Security, which started a downward spiral. A disappearing middle class. An ever expanding gap between rich and poor.

1 ( +2 / -1 )

.......adverse effects of inflation,

The panacea for non-growth in Japan according the LDP, BoJ and their ilk, has been the "miracle of inflation". If only they could achieve this all would be well they told the believers.

Now the Miracle has occurred - blessed be thy miracle makers - they seek a New Miracle to squash the "adverse" effects of the first Miracle.

Be walking on water soon.

-1 ( +0 / -1 )

Sales tax hurts the poor and benefits the rich, as it's the same rate for all, regardless of income. Just like a flat income tax.

Flat rates are simple and this fair and better for the economy and thus better for all.

If we actually want to offer assistance to the poor (and not just virtue signal), it begets us to do what’s best for the overall economy, as that’s where the wealth that can support a generous safety net comes from.

The rich consume more, and because they can afford to buy more stuff, they bear a greater - but proportionate - burden of consumption tax or whatever the tax.

It's not "hammering the rich". It's making them pay their fair share.

A fair share by definition is a proportionate share.

A non-proportionate share is be definition not fair. If you disagree, then tell me what specific rates of tax different people should pay, and the precise logic why? Not hand wavey stuff please, specifics.

-1 ( +0 / -1 )

Cutting tax will result in less money to spend on programs to help the poor.

0 ( +0 / -0 )

? Decrease tax revenue to fight persistent inflation in the economy?

1 ( +1 / -0 )

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