Yoichi Miyazawa, chairman of the Liberal Democratic Party’s tax system research, said that he would consider revising financial income taxation during the ruling party’s discussions on tax reform toward the end of the year, while also taking market trends into consideration. 17, he said in an interview with reporters.
Mr. Miyazawa pointed out that there are many people who took advantage of the stock market decline immediately after the outbreak of the coronavirus crisis and the recent depreciation of the yen to invest, saying, “There is no doubt that there is a movement in the direction of widening disparities.” He said, “I would like to have a proper discussion about the so-called 100 million yen barrier,” which would reduce the tax burden for the wealthy, who have a higher proportion of financial income.
Employment income is taxed at a maximum of 55%, but financial income is taxed uniformly at 20%. It is Prime Minister Fumio Kishida pledged to review financial income taxation in his campaign pledge last year, but it has not materialized due to falling stock prices and market criticism.
Expansion of NISA
The 2023 tax reform will also focus on expanding the small investment tax exemption system (NISA).Prime Minister Kishida said in a speech in New York in September that the NISA must be made permanent in order to boost investment from savings.
Regarding the prime minister’s remarks, Miyazawa said, “I know it’s not going to be easy, but in the end, it’s the ruling party’s tax policy that decides the tax system.”
Regarding Japan’s finances, he said, “Japan government bonds will not go bankrupt.” indicate. On top of that, he said, “Efforts to make the public finances sound are very important, and the tax system plays a part in that.”
other remarks
- A blank slate of considerations including corporate and income taxes: sources of increased defense spending
- Consumption tax cannot be used as a source of defense spending
- GX transition bonds, redemption financial resources must be considered
(Added details.)