Amid the current spread of surging consumer prices, the necessary support for those people struggling should be swiftly distributed in a focused manner.

Priority for the “tax exemption-with-cash payments” proposal being considered by the government should be on introducing the system with a simple framework.

The consumption tax cut that Prime Minister Sanae Takaichi has called her ardent desire is not in line with the original objective because it would reduce the burden across the board, including the wealthy, and due to doubts about its immediate effectiveness.

We call on her to retract the proposal.

HEAVY BURDEN ON THOSE WITH LOW INCOMES

The tax exemption plan with cash payments would combine a tax cut with cash handouts.

It was proposed with the objective of supporting low- and middle-income individuals.

The government’s social security public forum is expected to ask an experts’ panel made up of scholars and local government representatives to finalize the design for the program before summer.

The origin of discussions is the curve named after Yuri Okina of the Japan Research Institute Ltd., who is a member of the forum, as well as chair of the government’s Tax Commission.

She defined the net burden rate as the ratio of household income taken up by the tax and social security premium burden minus cash allowances such as for children.

An international comparison was made to observe changes as household income increased.

One example involved a........

© The Asahi Shimbun