Moral hazard with Furusato Nosei

[Hanimal]

Does anyone else feel the Furusao nosei scheme is wrongly morally?

Basically, people are diverting local taxes to random places to get 'free gifts' such as alcohol. On the way Rakuten and other companies are creaming off tax money at the expense of local communities.

The beneficiaries of the schemes would be typically younger rich people. Older people might not be computer savvy enough to understand how to apply for the 'free stuff.'

I have never particpated. I prefer my tax money to benefit my community.

[Deep Blue]

I think it's a stupid scheme which is completely counterproductive for Japan as a whole. Unquestionably it should be scrapped.

But I am very happy to take advantage of it and get some value for the insane tax bills Japan extracts out of me.

[Tsumitate Wrestler]

Does anyone else feel the Furusao nosei scheme is wrongly morally?

Basically, people are diverting local taxes to random places to get 'free gifts' such as alcohol. On the way Rakuten and other companies are creaming off tax money at the expense of local communities.

The beneficiaries of the schemes would be typically younger rich people. Older people might not be computer savvy enough to understand how to apply for the 'free stuff.'

I have never particpated. I prefer my tax money to benefit my community.

If you live in a large municipality with a huge tax base like Tokyo, Osaka, and you are sending money to communities specifically that need the support, you're fine IMO.

I send money to places close to my heart, mostly in Kyushu.

However, the scheme was not executed well. It needs to be reexamined, paired down to lower tax bases, or scrapped completely. It was advertised and promoted extremely well though.

[adamu]

I have never particpated. I prefer my tax money to benefit my community.

What's your motivation for making this post?

I wrote my thoughts here:

Economically it's a voluntary government stimulus package.

As a tax payer, you get free quality domestic produce.
As a non major municipality, you get more tax revenue.
As a producer, you get a stable and significant source of demand that wouldn't otherwise be there.
As a platform, you get the platform fee.

Funded by the state and larger municipalities.

Whether you agree with government stimulus is another thing, but whether it's a net negative isn't a clear cut argument IMHO.

[Deep Blue]

The Japanese Government as a whole receives less income and there are costs associated with all the bureaucracy involved. If the central Government wishes to fund the munipalities more, direct transfers are quicker, more efficient and less costly.

Only Japan could come up with such a hare brained scheme to reduce overall tax take, introduce more red tape and make things more complicated than before!

[Hanimal]

What's your motivation for making this post?

I'm not sure what you are getting at here. This is a discussion forum, I'm just introducing what I consider to be a relevant topic to be discussed.

[smalldog]

Moral hazard with Furusato Nozei

I find paying 57.1% income tax and the massive state pension/national health contributions levied pretty hazardous to my personal morals - so being able to offset a tiny bit of that with some fresh veggies, few cases of beers and a swanky new rice cooker for Mrs. SmallDog totally morally okay.

Absolutely agree with DeepBlue though - what a hare-brained scheme. Can they not just tax everyone 1% or 2% less?

[sutebayashi]

Basically, people are diverting local taxes to random places to get 'free gifts' such as alcohol. On the way Rakuten and other companies are creaming off tax money at the expense of local communities.

The expense is to those paying the furusato nozei - it's money they earned.

I find it strange that wealthy wards in Tokyo complain about how much money they have "lost" because of the scheme.

It's taxpayers money, not theirs.

I have also seen my local ward spend money on things that I don't believe the local ward needs to spend money on. Stuff that could be financed privately, assuming there is demand.

I am not a fan of NISA either. It's complicated.

I prefer simple, consistently applied policies.

I think this country has much wrong about tax policy and spending.

As myself, I don't make the rules, I just have to spend time understanding them and playing by them as suits me best. As a parent, isn't that my moral duty to my family?

[adamu]

What's your motivation for making this post?

I'm not sure what you are getting at here. This is a discussion forum, I'm just introducing what I consider to be a relevant topic to be discussed.

And I'm just asking what your motivation was

Maybe you are looking to validate your opinion, or are maybe thinking of giving it a try. Without that contex, I've nothing to add to the earlier discussion, which I also shared.

[Wilbur]

Furosato Nozei helps farmers a lot and the small towns they live in. It helps for the first introduction to individuals who may not be aware of some small towns and their produce. You may buy again from this farmer and help him a second time.

Furosato Nozei also benefits the delivery companies who transport these products. The companies who run the Furosato Nozei sites of course profit from it. The tax pay receives a gift for helping the economy work.

I think this a good system because it helps many groups. I am pretty sure it will continue because it is helping the economy.