Gov't floats ¥40,000 income tax cut a year to ease inflation pain

Just cut the consumption tax, you morons.

More disingenuous blather from the LDP.

Yeah, that will fix the problem. The crux is that Japan's major employers refuse to pay their workers wages anywhere near the companies' earnings growth and that the unions are too wimpy to ask them to. Japan's govt, employers and unions all need to study how US and Canadian auto workers got their new 20 percent raises.

Japan's choice is to make real structural improvements or to use a temporary ineffective band-aid. They've chosen the latter. Good luck.

What ever is going, I'll take it. Can't beat them, may as well take what they are giving.

Even less than I thought which wasn't much anyway.

The Japanese government is considering an income tax cut of 40,000 yen per person and cash handouts of 70,000 yen to low-income households

That for low-income households, for average household still need to pay tax while dealing with price hikes.

Just cut the consumption tax, you morons.

You beat me to it.

What is a low income household?

Many families have both parents working but make under a million yen a month.

Some may even struggle to break half a million a month in salary too.

It depends on expenses and actually who needs it wasn’t addressed in the last handouts.

Are handouts a post corona government incentive?

Prime Minister Fumio Kishida, who places priority on wealth redistribution

Right, like the gas subsidies they are wealth transfers from the public treasury to companies like oil conglomerates to supposedly keep prices down or to raise wages.

To return part of an increase in tax revenue to the Japanese people, 40,000 yen has emerged as an option within the government, according to the sources.

Echoes of the pandemic. Companies received years of stimulus monies and subsidies

until finally the LDP worked out a 10万円 one time coin toss to the peons.

What is a low income household?

Many possible definitions, but a common one is people who don't pay income tax ("hikazei"). This would be convenient here, because such people do not benefit from income tax cuts.

The 70,000 yen sounds like its per household, while the 40,000 yen is per worker or dependent family member.

increase taxes with 10% with the new invoice system, give back 0.5% of it as a handout, nice.

How many dollars $ in 1 Yen?

Great. I'd be glad to get this tax break. Anything helps.

Would you please STOP with the petty "handouts" that are just another political ploy in trying to save your own job!

People dont need 40,000 a year, (￥3,333 a month) nor a ￥70,000 one time handout, as you will just find other places to force them to pay it back with other tax increases or due to inflation.

People need a stable income and stable employment. Stable income that means they can live, not just survive!

People need a stable income and stable employment. Stable income that means they can live, not just survive!

It's on the people now. they need to rise up and demand higher wages.

The people of Japan have not been taught the difference between living and survival.

The Japanese government is considering an income tax cut of 40,000 yen per person and cash handouts of 70,000 yen to low-income households

The vast majority of Japanese people have "low income". But I suppose those generous benefits are for people who make less than 2 million a year.

Pathetic.

The vast majority of Japanese people have "low income". But I suppose those generous benefits are for people who make less than 2 million a year.

Pathetic

They’re pathetic for helping the people who need it most? How does that work?

That was my exact thoughts too, and it didn't even take me weeks to come up with this one. Cut the consumption tax. Simply put. You guys aren't making a Western here.

Just cut the consumption tax, you morons.

You beat me to it.

I got scooped, but I'm glad that you guys posted the same thoughts.

Gov't floats ¥40,000 income tax cut a year to ease inflation pain

Comes to a grand total of 3333 yen a month. yay.

Just cut the consumption tax, you morons.

You beat me to it.

Me too. And slash income tax on low and middle income wage earners too.

The backbone of the economy is the middle class. Take care of them and they will spur the economy on.

The only thing that trickles down with Trickle down economics is the upper class's urine.

¥40,000 is just a number. Further down the article it states ¥20,000. Just more vote grubbing hollow pledges from the LDP. It’ll be the same as Abe’s financial pledges. Corporations will get tax cuts and the minions will get nothing.

Yes, in theory the very right step, such big helicopter money for everyone is the solution with immediate results, as it will revitalize the economy and give opportunities to everyone in the economy, established and newly capable inventors, developers, producers and the customers or consumers. But wait, dear politicians, of course I didn't mean a smallest possible toy helicopter in the size of a match box. lol

Is that per month?

increase taxes with 10% with the new invoice system,

I doubt it works out at the entire 10%, but yes, invoice system is a de facto paycut for all under 10m yen freelancers, which includes many people who work in regular jobs but are paid as individual contractors so companies can avoid shakai hoken and employee rights. This includes creative industries like anime and manga that are sources of soft power.

70,000 yen would cover most of our winter heating bill, so it's not chump change.

40,000円 over 12 months is a moldy carrot dangled to appeal to the most gullible of voters. A token 70,000円 to low-income households is all well and good, but how about a bit more help for those slightly above that, but still struggling to get by aka the majority.

Why don’t they just cut the tax on essential items like rice, bread, milk, vegetables, children’s clothes ect. They can raise the tax on luxury items if they want. That would help people in need more.

This new invoice rule is awful for free lancers I am losing more money in tax.

Disgusting LDP.

A whole 110 yen per day of a tax cut.

What is a low income household?

Many families have both parents working but make under a million yen a month.

A million yen a month is 12 million yen a year. You say that as if it is a subsistence salary or something - it is close to double the average family income in Japan. Most households would be quite comfortable on that income, unless they insisted on living in a large family home in central Tokyo.

why we cant get exact information?

Nothing has been finalized yet. It’s an idea at the moment.

"Why is the value of the yen decreasing???"

Kishida saw the prices of lettuce last week and decided that 3,333 yen per month should do the trick.

On the bright side, I'm starting to notice more part-time job listings in my area for 1,200 yen per hour (not late night shifts). This is likely due to less people looking for part-time jobs and the demand to fill in their crew for daily operation is on the rise. I'm hoping this leads to more companies increasing salaries to retain their employees. We have a high turnover rate at our company as well and many are saying their new job is paying them more. This is happening very slowly, but let's wait and see what happens in a few years.

danToday  10:45 am JST

This new invoice rule is awful for free lancers I am losing more money in tax.

Indeed, a complete scam.

Comes to a grand total of 3333 yen a month. yay.

Wow, that's more than 100 yen per day! Not enough for a cup of coffee, but at least enough for a can coffee every other day. Get one with a twisting cap, and you can sip half, and save the other half for the next day.

This new invoice rule is awful for free lancers I am losing more money in tax.

Indeed, a complete scam.

Hardly, the 10% you charge for consumption tax and keep is the scam.

But no need to worry as if you make less than 10,000,000 you can still keep it.

Works out as ¥3,330 per month.

Whose life will be improved by this?

Legislation will be required to change the current tax system, making it likely that Japanese households, already reeling from the rising costs of living, will start feeling the benefits around next summer at the earliest.

Just increase the proposed cash handout by the amount of proposed tax deduction and just let people pay tax normally

People who can’t afford their bills.

But if the tax cut would be permanent or long term then it's preferable

cash handouts of 70,000 yen to low-income households

Pachinko establishments will surely benefit from this like the last handout. Hopefully it wont be as hot as last time so we don't lose more little children left in their car while parents are playing.

I already got rid of my car when my son was in college because of all the taxes that add up. Just hope my 20 year old toshiba fridge hangs on a bit longer.

Hardly, the 10% you charge for consumption tax and keep is the scam.

But no need to worry as if you make less than 10,000,000 you can still keep it

This is incorrect because rates in many industries have been set with the assumption that the 10% is kept. It forces people to now ask for higher rates. It is also highly unlikely that non-invoice system people will continue receiving work if an invoice system provider is available. Most work comes from providers actively wanting people to join the invoice system.

In a similar way, trucks use the highway at night and get a big ETC discount on tolls but it is extremely naive to assume this ends up in the driver's pocket. Trucking rates will simply have fallen to the cost of doing it at night.

Sale tax or good and service tax or consumption tax means no loops poles no tax rebate. Everyone pays. No rich dude with smart bean counter can’t escape the consumption tax. Now if the government can give out tax rebates to all low income earners. Mean the government has tax too much. And who have the government tax too much ? It seems like the low income earners.

Present japanese society where poverty expanding and foods or daily necessities' prices rapidly rising but income not rising. No family will be rescued by only 40000 or 70000 yen per year.

Present LDP regime only victimize daily life or health and the lives of citizen to benefit economy circles or wealth class or US arms industries.

Cash handouts of 70,000 yen to low-income households as part of temporary inflation-relief measures, sources familiar with the plan said Tuesday.

Sounds like GoToTravel to me and it makes me smile as those perks were brilliant and we used them to travel every 6 weeks and give it back to the people.

More MMT, More Inflation!

The Japanese government is considering an income tax cut of 40,000 yen per person and cash handouts of 70,000 yen to low-income households

this only applies to people making less that 4mil per year does not benefit anyone but the poorest

Hardly, the 10% you charge for consumption tax and keep is the scam.

But no need to worry as if you make less than 10,000,000 you can still keep it.

This is what they want you to think, in reality all people freelancing for Japanese companies will most likely have to go into the system if they want to keep their clients. This is a system to make it easier and cheaper for the big corps, not a thought about small businesses and freelancers. This clearly shows that the people in power is still stuck in the boom days, still think that the way to keep things going is to pour money into the big japanese brand companies, in any other country these would be long gone and replaced by more efficient and younger companies.

I do work for a well known global company for one of it's foreign branches, and some Japanese representative that I never talked to before reached out to me to check on my invoice status, no one is safe.

But if the tax cut would be permanent or long term then it's preferable

That would be a more meaningful tax cut - a permanent cut in tax rates. Ideally they would flatten the rates too, so that the incentive to earn more money be boosted.

But here it is a meaningless once off fake, drained more with an election in mind than actually doing something to boost the economy, economy, economy.

If a person knows that working more or smarter is not actually going to result in more take home pay after tax, you won’t change your behaviour. The next, your taxes will be back as they were.

So this is a nothing-burger for the economy.

In the first place, these tax revenues might be at record levels, but are not enough to cover the record levels of government spending.

So just keep the tax, and stop spending money that the country can’t afford.

Japan has seen record-high tax revenue for the past three years through fiscal 2022. Of the total, income tax revenue grew by around 3 trillion yen from fiscal 2020.

So why do we still have to pay the 2.1% 'Special reconstruction tax' for the 2011 earthquake until 2037?

This is supposed to be a special 'temporary' tax - so why not just reduce / do away with this?

Cash handouts should be across the board! It’s everyone’s tax payer money. In fact average income earners pay more tax than low income earners. It’s not only the low income earners who are facing difficulties but also average income earners who are struggling to pay for daily needs and necessities. Some people I know work so hard by doing 2 jobs and more than 12-14 hours a day just to survive and pay for the high cost of living and when they do this they fall in the average income earners and get no financial assistance from the Japanese Government. It’s like the Government is punishing hard working people who contribute the most to the economy and society. So cash handouts shouldn’t be only for low income earners but should include average income earners as well.

Too little too late and not even the close to the right type of solution.

And I had heard the dinosaurs went extinct. I guess not.

It means more heavy money printing because of Japanese budget in dark red.

https://www.statista.com/statistics/270117/budget-balance-in-japan/

At the end of the day, yen's value is reducing with time, which is what is happening.

Moreover, this tax reduction/deduction or handouts will be a one time action, it is indicated in the article.

Yoichi Miyazawa, who heads the LDP's tax reform panel, has said one year would be "common sense."

Good luck Japan !

110¥/day present from LDP. Nice.

Looks like some things never change.

It’s not only the low income earners who are facing difficulties but also average income earners who are struggling to pay for daily needs and necessities. Some people I know work so hard by doing 2 jobs and more than 12-14 hours a day just to survive and pay for the high cost of living and when they do this they fall in the average income earners and get no financial assistance from the Japanese Government. It’s like the Government is punishing hard working people who contribute the most to the economy and society. So cash handouts shouldn’t be only for low income earners but should include average income earners as well.

The 40,000 yen is per worker or dependent. If you have a wife who's a homemaker and two kids, you'll get 160,000 yen in tax relief. If your wife works enough to pay tax with the kids dependent on you, you'll get 120,000 and she'll get 40,000. A childless couple will get 80,000. Both are more than the 70,000 to non income tax payer households.

Most folk who don't pay income tax are not single. They'll be low earners with dependents. As a single person, you don't have to earn much to pay income tax. Its allowances for dependents (and all the ruses the self employed use) that normally keep people below the income tax threshold.

Wasn't he going to double both the military and the child rearing budget? And before figuring out how to pay for all that he decides to lower the taxes? I don't think he has any plan anymore but he is just winging it by now.