This year, the Diet has begun deliberations on the tax reform bill for the new fiscal year 2024, which includes fixed-rate tax cuts to be implemented from June onwards, and Finance Minister Suzuki has realized that income will rise through fixed-rate tax cuts in order to completely escape deflation. He asked for understanding in passing the bill, stating that it is important for the government to do so.
The tax reform bill for the new fiscal year will include
: ▽In addition to the fixed income tax reduction of 40,000 yen per person that will be implemented from June onwards,
▽The ``wage increase tax system'' that reduces corporate tax for companies that have implemented wage increases, will be implemented for small and medium-sized businesses in the red. The bill includes measures to allow tax cuts to be carried forward so that they can be applied to businesses as well.
At the plenary session of the House of Representatives on the 13th, the purpose of the bill was explained and questions were asked, and Minister Suzuki said regarding the fixed tax cut, ``I want people who have paid their taxes during the difficult times of the coronavirus pandemic and soaring prices to feel more strongly the increase in their income. "This is important, and we judged that a tax reduction would be desirable."
In response to the opposition party's question, ``Will the tax cut be a one-time thing?'', Minister Suzuki replied, ``This will be implemented as a temporary measure to completely overcome deflation, and it is not envisaged that it will be implemented over multiple years.'' "I haven't."
Regarding the wage increase tax system, Minister Suzuki emphasized the significance, saying, ``This tax system, which was strengthened two years ago, contributed to a certain extent to last year's high wage increase, which was the first in 30 years.'' He also announced new measures. Regarding the purpose of introducing it, he said, ``The purpose is to widen the scope of wage increases and strengthen incentives to include small and medium-sized enterprises.''
Chief Cabinet Secretary Hayashi “Carefully explains the significance and necessity”
At a press conference after the Cabinet meeting, Chief Cabinet Secretary Hayashi said, ``By reducing income taxes by a fixed amount in conjunction with efforts to raise wages, we will directly support people's disposable income and create a situation in which the growth in take-home pay exceeds the rise in prices. "I would like to instill a positive mindset in society as a whole that it is normal for wages to rise. I would like to carefully explain the significance and necessity of these fixed tax cuts during deliberations in the Diet."