The Kokumin Minshu Party (=Party for the People) made an election pledge during the campaign for the House of Representatives last October: to increase net incomes for the working population. The party has obtained 28 seats successfully in the parliament, growing from seven lawmakers and setting a four-times bigger growth record. Its pledge was to raise the minimum line of income tax payment, surging ‘from the current annual income of 1.03 million yen to 1.78 million yen.’
CONSUMPTION TAX REDUCTION IS MORE EFFICIENT
A barrier of \1.03 million
An income tax is not levied on a person who earns less than 1.03 million yen a year, when it is adjusted in accordance with the rules of a deduction for basic earnings (\480,000) and a deduction provided for salary incomes (minimally \550,000).
When a housewife works as a part-time worker and her earning exceeds annually 1.03 million yen, then she has to pay income tax and her spouse cannot enjoy a deduction measure for a spouse. And so, many of women try to work so that her income may not surpass this limit. This has been called ‘a barrier of 1.03 million yen’.
A proposal from the Kokumin-Minshu Party
The proposal is as follows; a deduction for basic earnings shall count \1.23 million with a hike by \750,000 and a deduction for salary income shall remain the same. Thus, a person with an annual income of 1.78 million yen is regarded as untaxable. So, people whose income a year is over \1.03 million can have a bigger earning, as the measure is applied unanimously.
The coalition of ruling Liberal Democratic Party (LDP) and the Komeito failed to gain the majority in the election for the House of Representatives last year. They are obliged to cooperate with the above-mentioned party. The coalition has responded to the proposal of \1.78 million, presenting the minimum taxable line of \1.23 million in the meetings to pursue cooperation. Because it estimated a decrease in tax revenue as \7-8 trillion in the national budget account.
Their idea is as follows: with surges by \100,000, respectively, in the deduction merits for basic earnings and salary incomes, up to \750,000. The administration is planned to implement this policy from the fiscal 2025, saying that an actual tax reduction will be made in the year-end tax adjustment.
For students – Free tuition and scholarships without reimbursement
When a college student works, earning over \1.03 million a year, he/she is taxed. If an income exceeds \1.30 million, he/she is disqualified as a dependent of their parent(s), and so, he/she has to pay healthcare premiums. As for students between 19 and 22 years of age, the parent(s) can enjoy a special tax deduction measure for supporting children, amounting \630,000, if their annual earning is less than \1.03 million (for students younger than 18 years old, parent(s) have a deduction of \380,000).
Reportedly, the ruling bloc suggested the minimum line of \1.5 million for college students instead of \1.23 million.
Please consider that more precisely. If a student works very hard to attain that level, he/she will have difficulties in their duties. Instead, it is much better to make tuition fee free and provide scholarships without repayment.
Progressive taxation
We do agree to a policy to raise the minimum taxable income line. But as far as the proposal from the Kokumin-Minshu is concerned, it is not reasonable; the bigger income earners enjoy the bigger actual income, because the party is not to change the current taxing rates. As for tax revenue, it will shrink as the ruling bloc says.
Besides, the Kokumin-Minshu’s proposal is totally unbeneficial to those who earn an income less than \1.03 million. That is why people say that the tax deduction policy is designed for wealthy workers organized by the Rengo. Workers should increase their net income for themselves by way of fighting in the campaign of Spring Labor Offensive.
The Kokumin-Minshu Party should prioritize their pledge of the consumption tax cut down to 5% instead of an ‘increase of a net salary/’
Unless the government intensifies a rule of progressive taxation and avoid a tax revenue decrease, budgets for education and social services will go down, even if a taxable income line is heightened.
国民民主党は、昨年の衆院選で「手取りを増やす」と公約し、７から28へと４倍に議席を増やした。所得税の課税最低ラインを「年収１０３万円から１７８万円に」引き上げるという公約である。
１０３万円の壁
所得税には、基礎控除（48万円）と給与所得控除（最低55万円）があり、年収１０３万円以下の人は非課税となる。 専業主婦のパートなどで、年収１０３万円を超えると所得課税され、配偶者控除も受けられなくなるので、就労を１０３万円以内に抑える人が多くいて、「年収１０３万円の壁」と呼ばれてきた。
国民民主の提案
国民民主党が掲げた政策は、基礎控除を75万円引き上げて１２３万円にし、給与所得控除は55万円に据え置くとするもので、年収１７８万円以下は非課税となる。しかも、収入の多寡に関係なく適用としているため年収１０３万円以上は手取りが増える。
衆議院で少数与党となった自公は、国民民主との協議で１７８万円の満額要求に対し、７～８兆円の税収減となると課税最低ライン１２３万円と回答した。基礎控除と給与所得控除をそれぞれ10万円引き上げて最低75万円にし、25年度から実施で、実際の減税は年末調整で行うとしている。
学費や奨学金で
大学生もアルバイトなどで年収１０３万円を超えると課税され、１３０万円を超えると親の扶養から外れ健康保険料の支払いが生じる。ただし19歳から22歳の場合、１０３万円までは親の扶養控除が特定扶養控除とされ、63万円となる（18歳以下の扶養控除は38万円）。
与党案で大学生の課税最低ラインは１２３万円ではなく、１５０万円という。しかし、そんなにバイトしては学業に支障が出るだろう。学費無料化や給付奨学金を拡大すべきだ。
累進性の強化を
課税最低ラインの引き上げに異論はない。しかし、国民民主の提案は現行税率を変えないため、高所得者ほど手取りが多くなるし、所得税収は与党が主張するように減る。 しかも、年収１０３万円以下の人には全く恩恵がない。そのため、連合傘下の恵まれた労働者のための減税ではないかと言われる。労働者は春闘で賃上げを勝ち取り、手取りを増やすのが本筋だ。
「手取りを増やす」でなく、公約の消費税５％を優先させるべき。課税最低ラインを引き上げても累進課税を強め、税収減を避けなければ福祉・教育等の予算削減につながる。
英訳版↓
No. 1392 A Barrier of 1.03 million Yen
The Kokumin Minshu Party (=Party for the People) made an election pledge during the campaign for the House of Representatives last October: to increase net incomes for the working population. The party has obtained 28 seats successfully in the parliament, growing from seven lawmakers and setting a four-times bigger growth record. Its pledge was to raise the minimum line of income tax payment, surging ‘from the current annual income of 1.03 million yen to 1.78 million yen.’
CONSUMPTION TAX REDUCTION IS MORE EFFICIENT
A barrier of \1.03 million
An income tax is not levied on a person who earns less than 1.03 million yen a year, when it is adjusted in accordance with the rules of a deduction for basic earnings (\480,000) and a deduction provided for salary incomes (minimally \550,000).
When a housewife works as a part-time worker and her earning exceeds annually 1.03 million yen, then she has to pay income tax and her spouse cannot enjoy a deduction measure for a spouse. And so, many of women try to work so that her income may not surpass this limit. This has been called ‘a barrier of 1.03 million yen’.
A proposal from the Kokumin-Minshu Party
The proposal is as follows; a deduction for basic earnings shall count \1.23 million with a hike by \750,000 and a deduction for salary income shall remain the same. Thus, a person with an annual income of 1.78 million yen is regarded as untaxable. So, people whose income a year is over \1.03 million can have a bigger earning, as the measure is applied unanimously.
The coalition of ruling Liberal Democratic Party (LDP) and the Komeito failed to gain the majority in the election for the House of Representatives last year. They are obliged to cooperate with the above-mentioned party. The coalition has responded to the proposal of \1.78 million, presenting the minimum taxable line of \1.23 million in the meetings to pursue cooperation. Because it estimated a decrease in tax revenue as \7-8 trillion in the national budget account.
Their idea is as follows: with surges by \100,000, respectively, in the deduction merits for basic earnings and salary incomes, up to \750,000. The administration is planned to implement this policy from the fiscal 2025, saying that an actual tax reduction will be made in the year-end tax adjustment.
For students – Free tuition and scholarships without reimbursement
When a college student works, earning over \1.03 million a year, he/she is taxed. If an income exceeds \1.30 million, he/she is disqualified as a dependent of their parent(s), and so, he/she has to pay healthcare premiums. As for students between 19 and 22 years of age, the parent(s) can enjoy a special tax deduction measure for supporting children, amounting \630,000, if their annual earning is less than \1.03 million (for students younger than 18 years old, parent(s) have a deduction of \380,000).
Reportedly, the ruling bloc suggested the minimum line of \1.5 million for college students instead of \1.23 million.
Please consider that more precisely. If a student works very hard to attain that level, he/she will have difficulties in their duties. Instead, it is much better to make tuition fee free and provide scholarships without repayment.
Progressive taxation
We do agree to a policy to raise the minimum taxable income line. But as far as the proposal from the Kokumin-Minshu is concerned, it is not reasonable; the bigger income earners enjoy the bigger actual income, because the party is not to change the current taxing rates. As for tax revenue, it will shrink as the ruling bloc says.
Besides, the Kokumin-Minshu’s proposal is totally unbeneficial to those who earn an income less than \1.03 million. That is why people say that the tax deduction policy is designed for wealthy workers organized by the Rengo. Workers should increase their net income for themselves by way of fighting in the campaign of Spring Labor Offensive.
The Kokumin-Minshu Party should prioritize their pledge of the consumption tax cut down to 5% instead of an ‘increase of a net salary/’
Unless the government intensifies a rule of progressive taxation and avoid a tax revenue decrease, budgets for education and social services will go down, even if a taxable income line is heightened.
February 26, 2025