Prime Minister Fumio Kishida arrives at his official residence in Tokyo. Photo: AP/Eugene Hoshiko/File
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Kishida says he has no plan to change financial income tax for now

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First in a long line of no change.

18 ( +20 / -2 )

[translation] Expect an increase in the rate of taxation as soon as resistance has decreased...

11 ( +14 / -3 )

During the TV program, Kishida reiterated that his government will promote tax breaks for companies that raise wages for employees.

Wage growth has been slow in Japan despite relatively solid corporate earnings.

It didn't take long for Kishida to fold at the slightest expression of displeasure from Japan Inc.

So as a reward for companies for keeping wages stagnant as profits rose, we are going to give you an extra incentive tax break! Expect it to come from a regressive rise in sales taxes.

13 ( +16 / -3 )

The Rich didn’t like that idea, the poor, the workers didn’t even know he had said that, they were too busy at work or fossicking in dumpsters for a stale bun…they might get taxed on that in the future. His next idea a tax on cardboard housing and blue tarps, currently not covered by the inheritance tax.

16 ( +21 / -5 )

Why do you say "financial income tax". Seems rather redundant. At least Superfluous.

Kishida-san has the plan, but he needs to win big in the general election first. It's the same as Aso a few years ago; took leadership of the party but couldn't win an election. Aso was never a real prime minister. So first become a real prime minister, then make big changes. Good luck Kishida-san, the hopeful future of the Japanese strength.

-11 ( +4 / -15 )

There won't be any wage raises for employees, only promises!

Those who got it made already will benefit from Kishida and his buddies (vice versa, too, of course)!

It was again nothing but yet another PR stunt!

12 ( +15 / -3 )

100,000 yen for children under the age of 18, that’s a very targeted demographic. I can only assume there will be a upturn in businesses that provide hair extension, BTS merchandise, game sales and large numbers of stuffed mascots being sold. For a short time.

3 ( +8 / -5 )

LDP

-1 ( +3 / -4 )

The ol' bait 'n switch straight from the LDP playbook. Next....

3 ( +6 / -3 )

Kishida is more of the same old same old Abenomix rubbish.

SMH!

2 ( +6 / -4 )

Kishida says he has no plan

So everything he says is just Lip Service.

3 ( +5 / -2 )

Doesn’t he mean families with children under 18?

Are not 19 and under considered children?

So Ichiro for example has a 5 year old child. He is given ¥100,000 and goes spend it on cigs, booze, or GoToTravel…where is the accountability for the spending?

1 ( +6 / -5 )

Kishida has no plan simply because Abe/ Nippon Kaigi haven't told him the plan yet....bet its constitution related as a priority.

3 ( +7 / -4 )

New PM, good old government.

0 ( +2 / -2 )

It has become plain in a space of a week what kind of a PM Kishida will be. Promises that make good media sound bites will be floated an then backflipped on as soon as someone voices an opposition to it. Aaah.., the ever elusive consensus that can never be reached.

There won't be any wage raises for employees, only promises! Those who got it made already will benefit from Kishida and his buddies 

Exactly -LDP business as usual, they are unable to change. ( unless they get a real drubbing at the election, which won,t happen here of course )

4 ( +6 / -2 )

Critics say the current flat tax rate of 20 percent is beneficial to wealthy people

Since when is a tax beneficial to the taxed?

-4 ( +1 / -5 )

This guy is one of the new type of Keynsian neoliberals. They spin the role of government, but really don't address the question of redistribution in any structural way. Take the quote below. We can imagine that only larger companies, with good profit margins and probably nice corporate welfare benefits will be able to increase wages. Often the requirements are a general % wage increase, with no necessity that it applies to all workers. Also, the paperwork for such subsidies is very burdensome, so the huge number of small and mid-sized businesses that employ most people will not be able to take advantage. But the real question, is why leave it up to the private capitalist class to decide the life outcomes of citizens in a democracy?

During the TV program, Kishida reiterated that his government will promote tax breaks for companies that raise wages for employees.

-4 ( +2 / -6 )

A one time Yen 100.000 cash hand-out?

Trying to buy votes? Thought that was illegal!

How about eliminating school fees (including universities) to make education completely free?

3 ( +5 / -2 )

Day 7 and already backtracking.

6 ( +7 / -1 )

How about eliminating school fees (including universities) to make education completely free?*

Then take a look at Edano & CDPJ proposals re. kids support policies ...of course opposition will get next to no time in the LDP connected media prior to the election, lest more plebs consider start considering giving them a vote.

0 ( +3 / -3 )

Day 7 and already backtracking.

He started backtracking even before being elected...after promising to investigate the Moritomo / Abe scandal ( because "kokumin are asking for it" ) at the start of the LDP internal election it only took him a few days to do a complete U-turn.

4 ( +5 / -1 )

OBVIOUSLY!!! Why would he say such thing BEFORE an election? No one would vote for LDP if that's the case. However, after the LDP gets elected again, the tide will turn and their true colors will come out... It is an endless cycle here in Japan.

4 ( +5 / -1 )

This idea of fiddling with tax incentives for companies to raise wages just looks like they are clueless as to how to let the economy start functioning dynamically by itself, so they are trying to take shortcuts to get what they want.

When government does that, it typically doesn’t work and actually makes the initial problems they were trying to solve, worse.

Critics say the current flat tax rate of 20 percent is beneficial to wealthy people.

So if you risk your money in financial investments… if your investment is a loser, you lost and you wear the loss. If your investment is a winner, you get to keep only 80% of what you got in return for risking your money. But being able to keep only 80% of that money that you got because you risked your money is “unfair” - you ought pay more….?

Bizarro… look, the wealthy spend money and pay more in consumption tax when they buy a new home or luxury car etc. It’s wrong to look at a single tax in isolation. The tax system is part of the broader system of taxation and government spending.

What is most beneficial to the wealthy is when government spends money on them. Like Furusato Nozei, GoToTravel, mortgage loan balance related tax exemptions, etc, etc. And those silly tax exemptions for companies who can do what the government wants to and probably would anyway.

This guy is one of the new type of Keynsian neoliberals.

A “Keynesian neoliberal”! Very nice!

How about eliminating school fees (including universities) to make education completely free?

Who pays to make it “free” then? Japan’s spending is already about 35% in excess of its tax revenues.

The people who get university educated will typically graduate and earn higher incomes, above those who enter the workforce directly out of school and start paying tax on their lower income immediately.

So that “free” education to me looks like a perk for the rich or to-be rich.

If we are to favour people with children, let’s just say they don’t need to pay income tax at all. (Less tax revenue yes, but in any case Japanese public spending is out of control and needs to be cut, but if we want to make it easier to raise children…).

1 ( +3 / -2 )

I think the headline just needs to stop after "no plan", because I haven't heard of one single way he plans to do anything. He may as well have said he'll create world peace, then leave it up to nation's leaders to implement, for all the actual ACTION he's taking on things. It is amusing how quickly he backed off even talking about it, though, and reverted to the usual "for now" nonsense.

5 ( +7 / -2 )

"There are many things that we need to do before the financial income tax," Kishida said

...such as make sure 'the rich' has enough time to restructure their finances in such a way so as not to take any hits from a policy change.

5 ( +6 / -1 )

In my field of work, a typical PDCA cycle means: Plan-Do-Check-Act.

However, the LDP's PDCA cycle goes like this:

P=Plan

D=Delay

C=Cancel

A=Apologize

We'll see later this month, won't we?

8 ( +8 / -0 )

Only 20 days until general election,

Kishida is mere "wrapping paper" that only make LDP look as if new by "cooperation" with politics reporters of mainstream media.

5 ( +5 / -0 )

"Much attention has been focused only on the (taxation) issue and there are widespread misperceptions that we will do it immediately," Kishida said on a Fuji TV program.

Misperceptions ? Nah ... No problems here. Not only we know you won't do it immediately we also know you won't do it at all because

"There are many things that we need to do before the financial income tax," Kishida said, adding that he will place priority on crafting the country's growth strategy.

Yes "many things" whatever they may be

Is there an opposition in Japan ?

2 ( +3 / -1 )

Apparently, there is a misunderstanding among the hoi polloi who aspire to understanding, dismissing expertise and advancing emotive opining, as if fact. Such is reflected in various postings.

The LDP, has functioned not just as an adjunct to power but is the systemic and institutional expression of not just the status quo, but the existing social order and the economics that contain the current state.

So-called, re-distribution of wealth through tax schemes be it trickle down (Reaganomics & Abenomics) which was dubbed a fraud by Stockman, its champion during the Reagan regime; or some queer notion of trickle-up, a magic formula that raises wages & spending and voila: profit-at-the-top, is moot. As japan shifts to a greater inequality and disparity of wealth, those empowered by such will disallow any scheme that threatens their increasing power & riches.

Free university education is a wonderful concept. And there are those who consider themselves wits or of some advanced intelligence espousing, no it is not free, it is paid for by taxes, stating an obvious fact as insight. It is 'free', in that it is based on an indexed tax system and the cost is distributed 'fairly' allowing those of lower incomes to attend without financial distress or simply unable due to costs. Furthering education is a rather enlightened principle and may even alter and enhance awareness into the structures of the body social and the world itself. Let alone the uses of science for varying means of advancement. As for university educated individuals becoming higher earners, that is a rather gross assumption and hardly nuanced in addressing such.

All of it, no matter, no mind, as even incremental change is hardly the mantra for the LDP and its titular head. Power is as power does, which is preservation of the status quo, in what is becoming almost hereditary, with a few ambitious commoners allowed into the circle of power, if they fully embrace the values of the appointed & anointed.

As for the investment class, they aren't individuals playing financial roulette, it is institutional aka investment firms and that entire power complex - their 'money' is handled by experts working for high end firms. And more so institutional investors aka corporate with hordes of cash and the power to alter markets and atop that call the tune to which politicians and their lackies dance. Kishida, has no intention of impeding on their profiteering.

2 ( +3 / -1 )

What is a "financial" income tax?

3 ( +3 / -0 )

Japan, the giant ship without a rudder.

1 ( +2 / -1 )

Thats because kishida already knows the upcoming election has already bin decided who will win.

1 ( +1 / -0 )

During the TV program, Kishida reiterated that his government will promote tax breaks for companies that raise wages for employees.

Love that one.

You raise wages of your employees and it gets set off for you not to lose out. How can it get set off? There are only 3 solutions to make up for the cost of the so-called tax-breaks:

.1 raise taxes with raising corp taxes being nonsense as it would then stills impact the corporation you want not to lose out, a non-starter then. Not withstanding that the Keidanren is going to run in the door to the PM residence within the hour this gets announced.

Next 2 options:

.2 decrease services elsewhere which will mostly impact individual tax-payers. They get more money but lose out somewhere else, hence zero-sum game. Social services are getting chopped off bit by bit for already decades, favored by sho-ga-nai-ism from the plebs.

.3 raise taxes at individual tax-payers' level which would then mean that tax-payers are ultimately paying for their own increase in wages, hence (again) zero-sum game. Personally, I love this one. So devilishly cynical. You can't make this up.

LDPnomics for ya. More to come, I'm afraid.

0 ( +1 / -1 )

What is Financial Income tax? Never heard of that. I don’t pay taxes anyway.

-2 ( +0 / -2 )

ShinkansenCaboose

I don’t pay taxes anyway.

You pay property tax, sales tax, nuclear disaster tax, Tohoku reforming tax,

2 ( +5 / -3 )

What is Financial Income tax? Never heard of that. I don’t pay taxes anyway.

Tax on financial assets, such as stocks..

Basically he gave some lip service that he would raise that tax for the wealthy, but the downside of doing that is that the wealthy will take their money and move elsewhere, so it actually would have a negative impact on Japan's economy. I'm sure he knew that ahead of time, though.

1 ( +1 / -0 )

Everyone is already paying tax their whole life

1 ( +2 / -1 )

Elections next month so I don't think it would be wise to touch taxes until they are finished then our Covitax will be ready..Yeppie..

1 ( +1 / -0 )

20 percent is already pretty high, compared to other countries. It's an odd policy when the govt is also encouraging people to invest in financial markets as a way of building up their retirement nesteggs in response to the deficiency of the state pension plans and near zero returns from govt bonds.

5 ( +5 / -0 )

therougouToday  01:00 pm JST

What is Financial Income tax?

Tax on financial assets, such as stocks

Thanks!

2 ( +2 / -0 )

@Zichi: I wrote before that I paid a ton of property tax but not much sales tax as I don’t buy much. No gas tax etc. never saw a breakdown of property tax going to Tōhoku but would not mind that at all and for other disasters.

zichiToday  12:53 pm JST

ShinkansenCaboose

I don’t pay taxes anyway.

You pay property tax, sales tax, nuclear disaster tax, Tohoku reforming tax,

-1 ( +1 / -2 )

Not an original thought in Kishida’s head then!

2 ( +2 / -0 )

Financial income tax on stocks is now at 20%. If it becomes 25%, it will become very hard for petty investors to earn profits and they will stop investing in stocks. Stock investors win and lose. It is very difficult to win constantly. If they want to raise to 25%, do so to big investors who invest big and win big.

1 ( +1 / -0 )

In the first speech itself, saying the less priority items shows the leader has not done the homework or lack leadership skills:) While saying redistribution as a keyword, it shows his conservativeness(everything is constant attitude) or the lack of idea of how the economy works :)

0 ( +0 / -0 )

Same LDP, different day.

Corporate and cashed-up from the Bubble days old fart controlled. Don't hold your breath waiting for them to do anything for workers.

0 ( +0 / -0 )

All politicians say no taxes, that sound bit is older than baseball!!

0 ( +0 / -0 )

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