Politics LDP coalition promises ¥20,000 cash handouts in election platform

[thomas]

What an utter waste of tax money and just a drop in the ocean!


According to the proposal, all residents of Japan would receive a ¥20,000 (approximately $138) cash payment, regardless of their income. Households exempt from residential tax due to low income would receive an additional ¥20,000.

The ruling coalition plans to introduce the measure by year-end, framing it as a central pledge in the Upper House election in July. Funding is expected to come from a higher-than-anticipated tax revenue surplus from the fiscal year that ended in March. A supplementary budget is set to be compiled after the election to cover the cost of the payouts.

This latest initiative revises an earlier plan from April to provide 50,000 yen per person, which was shelved amid public backlash for being an unsustainable populist policy. By pledging to redistribute excess tax revenues and providing additional aid to low-income groups, the government hopes to garner broader public support. The decision comes as opposition parties ramp up calls for a reduction in the consumption tax to alleviate household burdens. However, LDP leaders have rejected the idea, citing concerns that it could undermine the country's social security system, which relies on the consumption tax of up to 10 percent.

Ruling bloc includes 20,000 yen handouts in election pledge | The Asahi Shimbun: Breaking News, Japan News and Analysis

 

[mdchachi]

Well there are worse ways to waste tax payer money than to give some back to taxpayers.

 

[Lothor]

What an utter waste of tax money and just a drop in the ocean!


According to the proposal, all residents of Japan would receive a ¥20,000 (approximately $138) cash payment, regardless of their income. Households exempt from residential tax due to low income would receive an additional ¥20,000.

The ruling coalition plans to introduce the measure by year-end, framing it as a central pledge in the Upper House election in July. Funding is expected to come from a higher-than-anticipated tax revenue surplus from the fiscal year that ended in March. A supplementary budget is set to be compiled after the election to cover the cost of the payouts.

Ruling bloc includes 20,000 yen handouts in election pledge | The Asahi Shimbun: Breaking News, Japan News and Analysis

I wonder why there was an unexpectedly large surplus this year.

Despite the superficial appeal of refunding taxpayers, you'd think there would be better-targeted ways of spending the surplus, or even putting a dent in the country's enormous debt. Such a proposal so close to the election smacks of desperation/bribery.

 

[thomas]

I wonder why there was an unexpectedly large surplus this year.

Despite the superficial appeal of refunding taxpayers, you'd think there would be better-targeted ways of spending the surplus, or even putting a dent in the country's enormous debt. Such a proposal so close to the election smacks of desperation/bribery.

I couldn't agree more. If there's really a fiscal windfall, why not use it to reduce the skyrocketing public debt instead of bribing the electorate?