Aso says no income criteria planned for govt payouts
Written by Writer on Tuesday, November 11th, 2008
Aso says no income criteria planned for govt payouts
The Yomiuri Shimbun
Prime Minister Taro Aso indicated Monday that the government does not plan to legally set an income cap on eligibility for cash benefits promised by the government as part of new economic stimulus measures.
Aso suggested he preferred a method under which those eligible for the payouts file applications with municipal governments and high-income earners voluntarily decline to do so.
“It’ll create a lot of work if an income cap is set on recipients by law,” Aso told reporters. “Discussions have already been completed on the issue of legislating for an income-based cap [on cash payout eligibility]. I believe it’ll be easier to have people voluntarily decide not to go to municipal government counters [to claim the benefits].”
Under the government’s new economic stimulus package, it has been proposed that 12,000 yen be distributed to each citizen and permanent resident, with an additional 8,000 yen to those aged 18 or younger and 65 or older, as cash benefits. The plan would lead to the distribution of 2 trillion yen.
However, opinion is divided among the ruling bloc over whether high-income earners should be made eligible for the benefits.
Aso said it would be desirable not to increase the workload on municipal governments, which will be in charge of distributing the benefits to individual households.
“If there’s a better approach, we’ll consider it. I don’t know all the details, but if adjustments need to be made among the ruling parties [through negotiations] that’s fine. Basically, priority should be placed on having the money reach low-income earners quickly and fairly,” Aso said.
Earlier in the day, Akita Mayor Norihisa Satake, who heads the Japan Association of City Mayors, expressed his opposition to introducing an income cap that would make high-income earners ineligible for the government payouts.
“[Such a plan] would certainly cause great confusion at municipal governments,” Satake said in a press conference in Akita on Monday morning. He urged the government to carefully examine the issue before making a final decision, with a view to making the system as simple as possible.
(Nov. 11, 2008)
