RetireJapan

While it appears as though Kishida has already received many "suggestions" to tone down his rhetoric related to plans to raise taxes on financial income (e.g., gains on stock transfers and dividends), what have you heard about by just how much this tax may increase?

There was an article in Bloomberg a few days ago that indicated a 5% increase (https://www.bloomberg.co.jp/news/articl ... 0YT1UM0W01). Thus, the current rate would change from a flat rate of 20% (15% income tax and 5% inhabitant tax) to approximately 25%.

I think he subsequently indicated that he would back down on this proposal but it is a worrying trend for us individual investors. Japan already makes it difficult enough saving for retirement with the lack of tax advantaged accounts beyond the paltry NISA and IDECO. Add an extra 5% of cap gains and the situation is even more unfavorable. Moreover, and this is always my biggest gripe, these tax increases primarily hurt middle class investors. The ultra wealthy have a myriad of ways to legally reduce or avoid tax via shell companies and overseas businesses in tax havens so they will not have to pay the increases. If they really want to deal with inequality then you have to go after wealth and consumption - not income.

I would hope any such tax increases would take income into account, but there is a chance they would not. Not much we can do about it either way.

In the UK there is a capital gains allowance of 12,300UKP. It'd be nice to have something like that here too.