A full-scale discussion has begun regarding the “1.03 million yen wall,” which the Democratic Party of Japan is seeking to raise. Although the debate is likely to be difficult, there is a growing possibility that positive measures for student part-time workers will come to fruition.

The tax commission chairs of the Liberal, Public, and National parties attend the meeting with a stiff expression on their faces. We talked for over an hour…

Liberal Democratic Party Shigeyuki Goto Member of the House of Representatives
“We discussed what the purpose and purpose of the request was.”

Motohisa Furukawa, Chairman of the Tax Bureau, Democratic Party of the People
“I have received a paper with the most important issues regarding the 1.03 million wall countermeasures. I will take it back to the party and discuss it once again.”

On the other hand, the three parties and the government seem to be able to reach a compromise on the system of “specified dependent exemption.” This system reduces the tax burden on the head of the household if they support a child between the ages of 19 and 23, but if the child’s annual income exceeds 1,030,000 yen, they will not receive preferential treatment. This is said to be the reason why students refrain from working.

4th year university student
“I’m not working because it looks like it’s going to exceed 1,030,000 yen. I’ve been taking a break from my part-time job. Right now, it’s about 990,000 yen.”

3rd year university student
“While calculating the amount for each month, I also use the management app to calculate the amount for the next month. It started getting worse around August.”

Three students are approaching annual incomes of 1.03 million yen at the store, which is approaching the year-end party season.

Popular Yakitori Chef Yusuke Sueyoshi
“We’re trying to get them to come in early, or come in later, or cut back a little (shifts) so they can start in December.”

In order to resolve these issues, the plan is to make children eligible for the “specified dependent exemption” even if their annual income exceeds 1,030,000 yen.

Dai-ichi Life Economic Research Institute Economic Research Department Takuya Hoshino Chief Economist
“The impact of reduced government revenue and such things will not be large. The hurdles for implementation are low. I think it is a policy that is easy to implement.”

The debate over the “1.03 million yen wall” has begun a tug of war. There is a need for a system design that takes into account the actual circumstances of society.