The 'income barrier' issue should be viewed from the perspectives of the Ministry of Finance and the Ministry of Health, Labor and Welfare.
ぼんやりウォーカー
wrote a column · Nov 27, 2024 11:31
It is a video featuring accountant Mayu Yamada, which was very easy to understand, including the intentions of the Ministry of Finance and the Ministry of Health, Labour, and Welfare. I recommend it.
Resolving the issue of 'reducing work for part-time employees and students' is important, but increasing the basic deduction will increase the take-home pay of many citizens, so I definitely want it to be implemented.
Last year's spot flat tax reduction greatly increased the labor accounting personnel, tax accountants, and national tax office clerical costs, but the effects were disappointing as it was difficult to feel the benefits.
The increase in basic deductions will be permanent, and it is a very good tax reduction measure as it does not directly increase administrative costs.
On the other hand, as mentioned in the video, the barrier of social insurance is causing both individuals and companies to incur increased administrative costs and expenses, which is a headache.
However, at a personal level, the impact is limited to part-time employees, students, and their families.
Personally, I am not affected by the revision of social insurance, and I can benefit from the decrease in income tax and resident tax due to the increase in basic deductions.
The same goes for the wife of a company employee.
For example, if it were to be increased by 0.75 million yen, I alone would receive a tax reduction of a total of 0.225 million yen, consisting of 0.15 million yen in income tax and 0.075 million yen in resident tax.
There are discussions about how to deal with the decrease in revenue, but let's try to somehow handle it with the spirit of 'just give it a try'.
Personally, I think it would be good to stop the system of 'contributing to municipalities that are not even your hometown under the name of hometown tax payment' at this opportunity.
It's strange that it has become a de facto 'tax payment anywhere'.
The situation where 'regions compete with return gifts for survival' is fundamentally different from the original purpose.
How to deal with the issue of regions declining is, I believe, an important challenge that the country should tackle in the context of Japan's aging population and declining birthrate.
However, I don't think the current hometown tax system is a very convincing solution.
However, it is irresponsible to not have alternative solutions in mind.
By the way, I don't really have a negative feeling towards those who do hometown tax.
You should use the available system if you can, it's your personal choice.
I've written various things, but it’s still full of uncertainties, so let's pay attention to future trends.
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