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Government Seeks Early New Year Launch of Cross-Party Council on Benefit-Linked Tax Credits

Opposition parties will answer next month to an LDP plan for a joint forum of the government panel and Diet negotiators.

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Overview

  • The proposed measure would pair tax credits with cash payments to ease tax and social security burdens on low- and middle-income earners.
  • Working-level negotiators from the LDP, Japan Innovation Party, the Constitutional Democratic Party, and Komeito met on December 24 at the Diet.
  • The LDP proposed a combined format linking a government-established council with the cross-party talks in parliament.
  • Opposition participants cautioned against a setup in which the government controls the secretariat and agenda-setting for the forum.
  • Chief Cabinet Secretary Minoru Kihara said the government aims to start the council as soon as possible in the new year, while parties will respond in January and may invite the Democratic Party for the People.