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Thank you for the detailed analysis and explanation. Having lived in Japan for so long, I know not to hold my breath, as the prospects for meaningful change are probably still pretty slim. I suspect that the recent election was, as you suspect, more of a spanking than a reprieve for the LDP.

The current corporate tax policy seems flawed, as the trickle-down benefits are likely to remain elusive.

As for the 1.03 million yen problem, choosing another number such as 1.78 million yen as the threshold is likely to be only a temporary solution. The tax code for relatively low-wage earners seems far too complicated and creates perverse incentives that end up thwarting productivity and squeezing the average family's household budget.

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i agree with the last paragraph

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