The Liberal Democratic Party and its coalition partner, the Japan Innovation Party, compiled its annual tax reform proposal Friday, including measures to raise the income tax threshold and use a levy that had helped fund reconstruction efforts to now fund a planned defense spending hike.
Reflecting revived cooperation with the Democratic Party for the People, the ruling coalition welcomed calls to raise the income tax threshold to ?1.78 million ($11,400), effectively securing the DPP¡¯s support in upcoming deliberations over the budget for fiscal 2026.
¡±The discussion was grounded in a citizen¡¯s perspective,¡± Itsunori Onodera, the chief of the LDP¡¯s tax committee, told reporters Friday. ¡°This tax reform is imaginative.¡±
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