Overview
- In internal deliberations, the LDP is considering a path to the three-party target of 1.78 million yen after Dec. 12 talks, with tax chief Gotoku Onodera saying they aim to respond in good faith to last year’s agreement.
- A technical proposal would lift the basic deduction to 620,000 yen and the employment-income deduction floor to 690,000 yen, which calculates to about a 1.68 million yen taxable threshold for low-income earners after special add-ons.
- To bridge the gap with the 1.78 million yen goal, LDP officials have begun weighing an additional 100,000 yen for low-income households, though no final decision has been made.
- DPFP leader Yuichiro Tamaki is pressing to extend benefits to middle-income groups, while the LDP prefers focusing relief on lower earners, leaving the scope of beneficiaries unresolved.
- Separately, disclosures show at least five LDP prefectural federations spent roughly 1.11 million yen in 2023 at snack bars and lounges using political funds that included public subsidies, drawing criticism as tax talks advance.