経済｜消費税負担への給付金の効果は？ / Economy | What is the impact of subsidies on the burden of consumption tax?

Summary

Japanese Liberal Democratic Party Secretary-General Hiroshi Moriyama announced a cash payment of 20,000 yen per person in response to calls for a reduction in the consumption tax.

This amount is based on the consumption tax burden associated with annual food expenses, but in reality, it may fall short due to rising prices. Food costs, in particular, are increasing in major urban areas, and since the cash payment is a one-time benefit, it is unlikely to have a long-term impact. Sustainable measures to address the rising cost of living are needed.

Dialogue

This dialogue is fictional and based on the article.

Chako: Hey Log, it feels like getting a raise is like landing on “miss a turn” in a board game, right?
Log: Yeah, especially with prices going up; that 20,000 yen benefit might not be enough. Food expenses are definitely increasing.
Chako: Oh no! What should we do then?
Log: If a consumption tax cut is implemented, it will become a permanent policy, so we need funding for that. The current benefit is just a temporary measure.
Navi: To add to that, if high prices continue, there are concerns that household burdens will increase from next year onward.

Admin’s Note

This article discusses the effects of subsidies aimed at alleviating the burden of consumption tax, but in everyday life, I feel that the impact of rising prices on household finances is significant. In particular, in urban areas, the sharp increase in costs for dining out and luxury items makes it clear that 20,000 yen is simply not enough to cover these expenses. Since the subsidies are one-time payments, I strongly feel the need for policies that take a long-term perspective. Without sustainable measures, household finances will likely become increasingly strained in the future.