2023-11-03 11:10:39
Government and ruling party to review child allowance expansion
November 3, 2023 8:10pm
Changes in policies regarding households raising children of high school students
It was revealed on the 3rd that the government and ruling party are considering reducing the amount of deductions for families raising children with high school students regarding the “dependent deduction” that eases the burden of income tax. As the government expands the scope of child allowance payments to high school students in response to the declining birthrate, the ruling party’s tax system research committee will discuss the revision during the 2024 tax reform process at the end of the year. There had been talk of abolishing the deduction, but the plan is to avoid it in order to fend off criticism that it would increase the burden on a wide range of people.
Expanding the child allowance will lead to an increase in take-home income, while reducing the deduction for dependents will lead to a decrease. Depending on the design of the system, some people may face a substantial increase in the burden, so the extent of the reduction is likely to be watched closely.
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