Japan’s LDP, DPFP Execs Agree to Begin Policy Discussions; Economic Measures to Increase Take-Home Pay on Agenda

The Yomiuri Shimbun

16:13 JST, October 31, 2024

Liberal Democratic Party and Democratic Party for the People executives agreed Thursday to begin policy discussions.

The agreement has set the stage for the ruling parties and the DPFP to begin fully discussing tax breaks and other economic measures to increase take-home pay, which is something the DPFP has been pushing for.

LDP Secretary General Hiroshi Moriyama and his DPFP counterpart Kazuya Shinba, as well as LDP Diet Affairs Committee Chairperson Tetsushi Sakamoto and his DPFP counterpart Motohisa Furukawa, attended the meeting at the Diet building.

Moriyama asked Shinba for the DPFP’s cooperation to keep Diet proceedings moving.

With the ruling parties no longer having the majority in the House of Representatives, the LDP requested for a meeting with the DPFP. It was also agreed that Prime Minister Shigeru Ishiba and DPFP leader Yuichiro Tamaki should hold a meeting soon.

Meanwhile, Shinba and Furukawa are also expected to agree with their Komeito counterparts on Friday to have policy discussions. Policy makers from the three parties will hold specific discussions on a fiscal 2024 supplementary budget, a fiscal 2025 budget and tax reform.

Ishiba will seek to maintain his government by advancing a policy-by-policy “partial coalition” among the three parties. The DPFP calls for lifting the freeze on the so-called trigger clause to enable a temporary gasoline tax cut and for eliminating the “¥1.03 million barrier,” in which income tax is imposed on annual incomes exceeding ¥1.03 million, keeping people from increasing their take-home pay.

The government and ruling parties are considering including the DPFP’s policies in the government’s economic package, which will be finalized in mid-November. Political reforms, such as the abolition of political activity funds given by political parties to their Diet members, might also be on the agenda.