Komeito, DPFP Agree to Discuss Tax Reduction, Other Policies; Discussions Between 2 Parties, LDP to Begin Next Week

The Yomiuri Shimbun

17:05 JST, November 2, 2024

Komeito and the Democratic Party for the People have agreed to begin discussions on policies such as the DPFP’s pledge to cut taxes to increase take-home pay.

The secretaries general and the Diet affairs committee chairpersons of Komeito and the DPFP held a meeting at the Diet Building on Friday.

With the Liberal Democratic Party and the DPFP also agreeing to begin discussions on issues on a policy-by-policy basis, the three parties are expected to do so as early as next week.

Komeito and the DPFP confirmed that they will continue to discuss measures to raise the taxable income barrier — currently set at ¥1.03 million — below which income tax is exempted. The measures are a priority of the DPFP.

Komeito told the DPFP that it also wants to review the issue of the other two such barriers.

Above the “¥1.06 million barrier,” many secondary earners of the married couples are required to join pension plans and pay for health insurance, and above the “¥1.3 million barrier,” they are disqualified from being recognized as dependents of their spouses. The DPFP agreed with the Komeito’s request.

Regarding these so-called annual income barriers, many secondary earners in dual income households reduce their working hours to avoid being removed from the category of dependent or having their take-home pay reduced.

These are seen as factors contributing to labor shortages, and therefore Komeito had included a review of income barriers in its campaign pledges for the House of Representatives election.

After the meeting, Komeito Secretary General Makoto Nishida stressed to reporters, “The two parties have many areas in common.” His DPFP counterpart Kazuya Shinba said, “We have gained an understanding [from Komeito] of the need to increase people’s take-home pay.”

The two parties also agreed to hold a meeting of their leaders around Nov. 11, after selecting Komeito new leader.