In the Diet, one of the points of contention is the so-called "annual income barrier," which excludes spouse support after a certain annual income is exceeded.
The government plans to consider countermeasures, as it is also a reason to reduce working hours.
The so-called "annual income barrier" is also a reason to limit working hours because if your annual salary income exceeds "1.3 million yen" or "1.06 million yen", you will not be able to support your spouse, and the burden of social insurance will be incurred. It has been pointed out that
Both the ruling and opposition parties have expressed opinions calling for reform of this system, which is one of the points of contention in the current Diet session.
Prime Minister Kishida said at the House of Representatives Budget Committee on the 1st, "It is important for part-time workers and others to be able to increase their income according to their wishes, and I would like to consider it widely."
The government plans to consider measures to deal with the "annual income barrier" from the perspective of promoting the appointment of women, while taking into account the opinions of the ruling and opposition parties.
On the other hand, in the Diet, the Japan Restoration Party and the Democratic Party for the People have proposed a system adopted in France, which reduces the income tax burden of a household as the number of dependents such as children increases. The introduction of the method is expected to be discussed in the future.
Income Tax
Income tax in Japan is levied on a per-individual basis, but in the case of the "N-divided-N-squared method", it is levied on a per-household basis.
In this method, after adding up the income of one household, the total income is divided by the number of people including children and other dependents, and the amount of income tax is determined based on that figure.
For example, in France, where this system is adopted, the number of children up to the second child is calculated as 0.5, and from the third child onwards as 1 child.
For this reason, in the case of a family of four, a dual-income couple and two children, the number corresponding to "N" is 3.
After dividing the combined income of the couple by "3" and multiplying the tax rate to determine the temporary income tax amount, multiply by "3" again to determine the tax amount.
In France, too, a progressive tax system has been introduced in which the higher the income, the higher the tax rate. Lighten your burden.
In past reports, the government's tax system research commission has discussed the pros and cons of introducing taxation on a household
basis
. We are putting together a negative view that it will give a big profit.
At the House of Representatives Budget Committee meeting on the 31st, Minister of Finance Suzuki also showed a cautious view, saying, "I am aware that there are various problems," in response to being asked about the pros and cons of introducing the N-divided-to-N method. I'm here.