The so-called "1.03 million yen wall." The LDP and Komeito are in discussions with the Democratic Party for the People over the amount of the increase. However, there are complaints from local governments that are expected to see a significant drop in revenue. ■What is the appropriate amount to increase the wall? Caster Kato Silvia: This time, we will focus on two points about the "1.03 million yen wall": ▼How much will the increase be? ▼What will the actual take-home pay be as a result of the increase? Yuichiro Tamaki, leader of the Democratic Party for the People, has said that the 1.03 million yen wall will be raised to 1.78 million yen. The basis for this is the minimum wage. The minimum wage has risen since the 1990s when the 1.03 million yen wall was set. Therefore, the figure of 1.78 million yen has come out to reflect the rising minimum wage. On the other hand, LDP President Shigeru Ishiba is cautious about a significant increase because he expects a revenue drop of about 7.6 trillion yen. Regarding the amount of the increase, Keiichi Kaya, an economic commentator, said, "I think it is appropriate to increase the amount in line with the rise in prices. The amount should be around 1.13 million yen." Chiaki Horan, anchor: It seems that it is quite difficult to decide where to draw the line. TBS special commentator Hiroshi Hoshi: One is the debate over whether it is price increases or the minimum wage. The other is the amount of revenue loss. If the amount of revenue loss is 7.6 trillion yen, it will be difficult. The problem is where to draw the line. The 1.03 million yen barrier is a tax barrier, but there is also the social insurance barrier, and consistency with that will be necessary. Various adjustments will be necessary. Takahiro Inoue, anchor: It is true that the government's estimate of a "revenue loss of more than 7 trillion yen" is quite large. However, all the estimates that come out are "tax revenue will decrease, so local areas will be in trouble." On the other hand, if people can work up to an annual income of about 1.8 million yen, it is said that the national salary will increase by about 400 billion yen, and I think that the tax revenue will increase to the extent that the economy will turn around. However, it seems a little unfair to just say "revenues will decrease" without providing any estimates on the part of the tax revenue increase, that is, the part that will benefit the lives of the people. Hoshi Hiroshi: I think that eventually there will be estimates on how much the economy will expand due to the multiplier effect. However, no matter how you look at it, it will not reach the amount that covers the 7 trillion to 8 trillion yen (of the revenue decrease), so there is no doubt that tax revenues will decrease by that amount. ■If the wall is raised...how much will the take-home pay increase? Kato Caster: So, we asked financial planner Nanako Tsukagoshi how much the take-home pay will actually be if this wall is raised. [What will the take-home pay be if you work right up to the wall?] (For a part-time housewife living in Setagaya Ward) ▼If the wall is 1.03 million yen: Only 10,000 yen will be deducted for resident tax, and the take-home pay will be about 1.02 million yen. ▼If the wall is 1.78 million yen: In addition to resident tax, social insurance premiums will be deducted, so the take-home pay will be about 1.34 million yen. Although you won't be taxed on income, one point to note is that you will be required to pay social insurance premiums. Chiaki Horan: This is what Hoshi-san was talking about earlier, the question of consistency with social insurance premiums. Hiroshi Hoshi: This arises because the original tax barrier and the social insurance barrier are different. However, in the case of social insurance, even if you have to pay several thousand yen a month, it will eventually come back as a pension, so although it is a bit of a burden at this stage, there are positive aspects when you think about the future. Caster Horan: However, I think that unless you continue to pay for a period of time that you can feel that it is clearly beneficial, it won't make that much difference in the end. For example, some people who are temporarily working part-time may think that "social insurance" and "pension" are the same, but aren't they? Hiroshi Hoshi: (You can receive your pension from around age 65, so it's probably normal to think, "I just want some immediate income." ■ Is the "1.03 million yen barrier" only part of the problem? What are the real issues facing Japan? Caster Inoue: I think that in this election, Representative Tamaki made it very easy to understand that one of the issues was "raising the 1.03 million yen barrier" and "increasing take-home pay." But in the end, after discussing and thinking about it, we have to consider it as a whole, including other barriers such as social insurance premiums. Did Japan really have to make the system so complicated? Hoshi Hiroshi: In the first place, designing a system like this is not so simple. On the other hand, there is the issue of taxes, and for example, there is the 1.03 million yen barrier for student part-time work, but there is also the debate of "Do students really have to work part-time for 1.03 million yen a year?" If there is 7 trillion or 8 trillion yen, we need a system that can be diverted to tuition fee reductions and scholarship expansion so that students do not have to work long hours. So, in addition to the issues of taxes and social security, it also overlaps with the issue of free education. Holan Caster: I think that when things spread horizontally, the government tends to become more unable to act. Then, vertically, there are people who say, "Let's solve this once and for all"... (https://newsdig.tbs.co.jp/list/articl... ▼TBS NEWS DIG Official Website https://newsdig.tbs.co.jp/ ▼Please subscribe to our channel! / @tbsnewsdig ▼Information provided by "TBS Insiders" https://www.tbs.co.jp/news_sp/tbs-ins... ▼Video provided by "TBS Scoop Post" https://www.tbs.co.jp/news_sp/toukou.... #News #news #TBS #newsdig