"Paying it will make life tough" - Consumption tax is the biggest source of income... Tax revenue next year to reach a record high of 78.4 trillion yen [Hodo Station] (December 25, 2024)
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The government estimates that next year's general account tax revenue will be 78.44 trillion yen, an increase of about 5 trillion yen from this year's record high. The weak yen has led to a succession of companies experiencing favorable business performance, which is expected to lead to an increase in corporate tax. The "flat-rate tax cut" will no longer be in place. There are various reasons for this, but the main factor is the "consumption tax." Twenty years ago, the consumption tax was around 10 trillion yen, but after two tax hikes, it is now the largest source of revenue, surpassing both corporate and income taxes. Living on a pension (75): "I think everyone is doing really well, just like this. There have been no riots and I'm surprised we're all living well. What are the taxes for? I want people to think about it." Company employee (30s): "(Q: Tax revenue next year is expected to be the highest ever, right?) I feel a little sad that my pockets will be tight." Caregiver (20s): "Paying the tax is making my life tougher. Prices are also rising, so I feel like it's a contradiction." As the prices of goods are rising rapidly, tax revenue from the consumption tax is expected to increase even more next year. The voices calling for "returns" are rising. Company employee (50s): "(Q: Is the amount deducted too much no matter what?) It's a lot. If I think of it as for the sake of future children, I can accept it in my mind, but when it's used for something other than that, I wonder what it was all for. Company employee (50s): "I think it would be good if the taxes were effectively increased in a way that properly communicates what is needed to the public, but it's often hard to know what the return will be." From Nagatacho... Furukawa Motohisa, acting representative of the Democratic Party for the People, said, "We are taking too much, so we are calling for policies that will put more money in people's pockets and increase their take-home pay." However, while tax revenues are 78 trillion yen, expenditures are 115 trillion yen. The shortfall will be covered by issuing government bonds. A Finance Ministry source said, "We have to listen to the voices that say there may be wasteful spending, but there is simply not enough tax revenue to rebuild the finances. To begin with, we are running a huge deficit." The government is set to decide on next year's budget proposal at a cabinet meeting on the 27th. [TV Asahi News] https://news.tv-asahi.co.jp
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