'Ambiguous Vulnerables' Demand Tax Cuts Amidst Burden of Taxes and Rising Prices

Demands for tax cuts are spreading among Japan's working population, who are squeezed by the combined burden of taxes, social insurance premiums, and rising prices. The focus is on the 'ambiguous vulnerables' who fall into the blind spots of welfare benefits. In Japan, the consumption tax, introduced at 3% in 1989, has now reached 10%, with a reduced rate of 8% applied to food items excluding alcohol and dining out.

According to analyses by the Asahi Shimbun and Daiwa Institute of Research, as wage growth has stagnated, the ratio of taxes and social insurance premiums to income for worker households with two or more members has steadily increased from 20.0% in 1989 to 24.9% in 2024, exacerbating household financial burdens.

Despite this increasing burden, working households often have incomes too high to qualify for public assistance, thus being excluded from government support. In an interview with the Asahi Shimbun, Professor Masaaki Ito of Seikei University defined these individuals, who are also left out of policy benefits aimed at the elderly or families with children, as 'ambiguous vulnerables' positioned on the border between welfare and support.