Trilateral Discussion on Refundable Tax Credit
The leading coalition, Liberal Democratic Party (LDP) and Komeito, started policy talk on refundable tax credit (RTC) program with the Constitutional Democratic Party of Japan (CDPJ) on September 25 th . The CDPJ has been advocating the system as a solution for helping households, focusing on helping low-income families. It is still unclear whether the discussion will be succeeded by next LDP president who will be elected on October 4 th . The RTC is a system of tax credit based on each income. When the government introduces 150 thousand yen of tax credit, the payment of a taxpayer paying 200 thousand yen will be reduced to 50 thousand yen. But another one who pays 100 thousand yen will not receive 150 thousand yen, and it will only be reduced to zero. In this case, the government will pay 50 thousand yen in the program of RTC. The opposition parties have been requesting the leading parties to introduce reduction or abolition of consumption tax to protect families fro...