The consumption tax reduction bill, which is the main focus of the current Diet session, was passed by the House of Representatives on the 6th. Prime Minister Sanae Takaichi has announced his intention to expand the scope of the ``Employee Burden Reduction Support Subsidy'' system for middle- and low-income earners, in anticipation of the House of Councilors debate, where the ruling party will have a majority and will become the ``main center'' of the battle between the ruling and opposition parties. It sent an autumn wave to Komeito. However, in the House of Representatives vote, all opposition parties opposed the bill, and even the Liberal Democratic Party rebelled. It is still unclear whether the move will gain cooperation from the House of Councilors.
Ishiba, Obuchi and others abstain from voting on consumption tax reduction bill, calls for punishment
"We will consider increasing the proportion of active workers to 30% or more." At the House of Representatives Finance and Financial Services Committee meeting on the 6th, the Prime Minister made this statement to Representative Komei Okamoto Mitsunari, who asked him a question.
As a reference, the government had previously indicated that approximately 20 million people with annual incomes of 1 million to 3.5 million yen, equivalent to 30% of workers, would be eligible for support funds. There is no doubt that the prime minister has in mind Komeito, who has been calling for the expansion of the target. In fact, Mr. Okamoto freely praised the answer, calling it ``a very important answer.''
Komei opposed the bill, citing the lack of clarity regarding the system design for the support funds. Okamoto told reporters that the House of Councilors' response will be judged based on whether it will have a positive impact on people's lives. The plan is to request further expansion of the number of eligible people and an increase in the amount of support.
The ruling party also hopes for cooperation from the Democratic Party of the People. The party called for reductions in resident tax and income tax included in the counterproposal, but the Prime Minister stuck to his previous line of response, saying at the Finance Committee, ``It is necessary to sort out issues such as the impact on local finances and securing permanent revenue sources.'' Even within the Liberal Democratic Party, there are persistent voices of caution, saying that the ``impact will be too great'' (a senior tax affairs official).
The Japanese Conservative Party, which has two seats in the House of Councilors, has voted in favor of the bill, leaving it with two seats left for a majority. However, in the House of Representatives vote, four members of the Liberal Democratic Party who prioritize fiscal discipline, including former Prime Minister Shigeru Ishiba and former Economy, Trade and Industry Minister Yuko Obuchi, withdrew from their seats. Even in the House of Councilors, some are wary of the movements of Junichi Ishii, who was removed as House of Councilors secretary-general in the recent reshuffle.
In the House of Representatives, the Finance and Finance Committee deliberated for 30 hours, and when the ruling party accepted just one hour of questions from the prime minister, the opposition parties readily agreed to the vote. However, Komeito executives are reluctant to hold back, saying, ``The battle is in the House of Councilors.'' A senior Liberal Democratic Party member of the House of Councilors is concerned that ``if there is rebellion in the House of Councilors, we are out.'' A party official said, ``To what extent are you willing to accept the begging of Komeito and the Democratic People's Democratic Party?The question is whether you can prepare the financial resources to do so.''
