Debate over raising 1.03 mil. yen tax threshold gains steam in Japan
Ideas:
If the tax threshold is increased that might mean more hours for part-time workers, which might help some with the labor shortage in Japan.
There might be some or many part-time workers in Japan with families and or are considered low-income workers who need a way to earn a living wage and or income to not be in the poverty zone.
Japan needs to help its part-time workers work more hour which can help with the labor shortage. If more part-time can work more hours, and of course not have to pay taxes that can help a lot for part-timers.
Japan needs to increase the special tax exemption for dependents as they too can contribute to the householders in Japan.
Japan needs to find ways to keep people working and reduce the labor shortage. If not then the part-timers will not increase their hours and the labor shortage will continue.
Of course if all part-timers were able to increase their hours that doesn't mean the labor shortage in Japan will lesson, but it will go a long way to helping some companies with labor shortages.
An increase from 1.03 million yen to 1.78 million yen is a large increase in income which can help a lot of part-timers in Japan, and maybe even help some with consumer spending in Japan.
Maybe if Japan increased the minimum wage in Japan that might help too as again, there might be some or many families with part-time workers such as women with children who can only work part-time and need to take care of their young children.
Japan might have one of the lowest minimum wage rates among advanced developed nations still as they need to increase the minimum wage to help low-income workers.
There might be many income barriers in Japan at this time, as maybe some of the barriers might be 20 century ideas and not 21st century ideas.
And yes increasing Japanese people's disposable income might help with consumer spending in Japan, as spending in Japan is not where it should be at this time.
And it might help with the labor shortage but its not going to completely eliminate the lavor shortage in Japan.
Yes, there are many things that could increase inflation, but at the same time, they might not have that much of an affect on inflation.
Increasing the tax threshold is needed in Japan, as Japan needs all the help it can get to increase disposable incomes along with the possibility of increasing consumer spending.
If peoples tax revenue is decreased it might help with their disposable income along with increasing consumer spending, which can help with tax revenues as consumers pay a sales tax on things they buy in Japan.
Governments should stop playing games with peoples lives and work together for the good of the people.
Just as wage increases for Japanese workers help with increasing their disposable incomes, so too should the tax threshold be increased to help part-timers too with their disposable incomes.
What Japan, at this time, doesn't need is another sales tax increase which will, again, like in 2014 an 2019, decrease consumer spending in the Japanese economy.
What they are not looking as is the possibility, again, of increased disposable incomes among low-income workers, which might be some college students but some or most of them could be working women with children who can only work part-time because of their young children.
The Japanese government, like they always do can supplement any loss in revenue as they have done many times before in Japan.
Its time for Japan to join the 21st century with tax plans and a minimum wage that is befitting advanced countries like in the Northern European countries such as Norway, Finland, and Sweden along with Denmark who have good plans for their citizens.
Its not easy to decide which is more important, the local governments need for continued revenue or helping the large part-time population in Japan.
The Japanese government needs to set some priorities and find ways to fund those priorities without leaving anyone behind in the local areas or the again large part-time work population in Japan.
One possibility is to increase the minimum wage and maybe not increase the threshold tax and that might be enough, or increase the minimum wage and increase the threshold to maybe 1.58 instead of 1.78.
When these thresholds were set-up maybe the cost of living or inflation back then was not a major challenge but today inflation is hurting everyone, and part-time workers need help just to pay their bills.
Sometimes Japan moves very slow and this might be one of those situations where the tax threshold, which might have been created decades ago, are just not relevant today, as again, the inflation level was much lower along with the overall cost of living in Japan.
If Japan was to be a real advanced economy again, it needs to find ways to help all of the part-time workers who might need and want to work more but can't because of the tax threshold.
Just what kind of supply shortage is the economist thinking about as Japan is a resource poor country and already imports much of what it needs, so there will be no real change if a tax cut is implemented, which has happened already many times in Japan the last few years.
Implementing such as step might not be any worse than what is happening now as Japanese households suffer from high inflation and prices which are passed-on to consumers as imports are increased due to the weak Japanese yen.
Consumer spending in Japan has already slowed and has been slow for a very long time, so any new programs, such as the need to help low-income workers and or part-time workers is not going to cause the side-affects that some fear.
And the Japanese government, as needed, as usual, can and will help local governments with further supplements so that all can be taken care of in Japan, at the same time.
Have a nice day!
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