The ruling Liberal Democratic Party is stuck between a rock and a hard place over whether to raise the threshold for tax exemptions from the current ?1.03 million ($6,740) ¡ª which, if implemented, could rally much-needed support from the opposition Democratic Party for the People, but would slash tax revenues.
The LDP and the DPP¡¯s policy chiefs officially kicked off discussions Friday on policies they could potentially agree on, with the key item being the latter¡¯s proposal of raising the exemption threshold for income and resident tax to ?1.78 million.
DPP¡¯s support would be crucial since the LDP and its junior coalition partner, Komeito, no longer have a majority in the powerful Lower House after their defeat in last month¡¯s general election.
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