“Papaka, poppaka, spread the roses. I want to tell people not to play such easy politics.” Toru Hashimoto, a former governor of Osaka Prefecture and a lawyer, said this on Kansai TV’s “Shunkan LIVE Torete!” on the 24th. The target of criticism is the flat income tax cut of 40,000 yen per person, which the Kishida administration is considering as a key measure to combat rising prices. Combined with the 70,000 yen benefit to low-income earners and elderly tax-exempt households, the total amount of disbursements is expected to reach 5 trillion yen. Tax cuts are intended to target dependents in addition to taxpayers themselves, but this will only create a different level of disparity.
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■360,000 yen for the Hashimoto family, 70,000 yen for low-income families
If the tax is reduced by 40,000 yen for each dependent, the total “return” benefit will be 120,000 yen for a three-person household where the taxpayer supports two family members. Mr. Hashimoto, who is known for having many children, has seven children with his wife, and if he supported them all, he would receive a total tax reduction of 360,000 yen. Of course, for Mr. Hashimoto, a sought-after TV commentator, it is difficult to imagine how high prices will affect him.
The government will also distribute 70,000 yen to low-income groups who are not eligible for the tax reduction, but this is only “per household.” The amount distributed remains the same no matter how many children there are. This is supposed to be a support measure that spreads “return” to a wide range of people, but if it’s a large family like that “Big Daddy,” it will only bring a small benefit.
“For households with many growing children, the cost of food is a worry. With all kinds of food prices soaring, even a handout of 70,000 yen is nothing.” (Hiroaki Urano, Special Researcher, Rissho University Institute for Legal Studies) Mr. = tax law)
This is a “disguised” tax cut that will clearly expose families with children and create a new level of disparity between rich and poor. On the program on the 24th, Hashimoto complained, “We should give more to those who are truly in need,” and a similar scene occurred in 2020. At the time, Mr. Hashimoto questioned the Abe administration’s uniform payment of 100,000 yen per person during the coronavirus pandemic, saying, “My place is 900,000 yen. Is that okay?”
The fact that we cannot learn from precedent is proof that Prime Minister Kishida’s tax cut policy is nothing more than an ad hoc election strategy.
Since it was announced so suddenly, the system design was also half-baked. As a result of Amanei’s plan to “increase the scale and broaden the target” in order to get votes, the Choreigaku reforms continue. Whenever criticism arises, the amount of benefits may be increased depending on the number of children, or income limits may be put in place to exclude the wealthy from receiving tax cuts.
