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TOKYO, Nov 21 (News On Japan) –
Japan is facing a deepening crisis of poverty and inequality, with rising reports of ‘invisible homeless’ individuals and growing economic hardships among the population. Discussions over reforms to the country’s tax and welfare systems have taken center stage, as policymakers grapple with how to provide meaningful support.
On November 20th, BS-TBS’s “Hodo 1930” program aired a debate featuring political leaders from the Liberal Democratic Party, Komeito, and the Democratic Party for the People. The parties announced an agreement to revise the 1.03 million yen income threshold for spousal tax deductions, a limit that has remained unchanged for over 30 years. The revision is seen as a critical step toward addressing income disparities. However, concerns linger over the projected 7 trillion yen shortfall in tax revenues that could follow.
Economic hardship is driving a surge in public assistance applications, which reached 255,079 cases in 2023—the highest in over a decade. Yet, experts note that many eligible individuals avoid applying due to the stigma and bureaucratic hurdles associated with welfare programs. Increasingly, the issue of homelessness is being reframed to include those with unstable living arrangements, such as individuals residing in internet cafés, cars, or with friends. These “invisible homeless” represent a growing population facing precarious circumstances without reliable access to support.
Young people, particularly those facing financial desperation, are also turning to illegal jobs, known as “dark part-time work.” Participants in such jobs describe being lured by promises of quick money, only to become trapped in dangerous situations. Experts link this phenomenon to Japan’s rigid social structure, which discourages individuals from seeking help and creates a stigma around relying on public support.
Advocates argue for significant reforms to Japan’s welfare system, calling it outdated and overly restrictive compared to those of other developed nations. Proposals include replacing the current public assistance framework with a system that guarantees a basic living standard, ensuring that all citizens can meet essential needs amid rising costs of living.
Political leaders emphasized the importance of creating a more inclusive and supportive society. Makoto Hamaguchi of the Democratic Party for the People stated that systemic changes to the tax and welfare systems are needed to tackle inequality effectively. Meanwhile, experts caution that without addressing the cultural stigma around seeking help, reforms may fall short of reaching those most in need.
The government is expected to finalize its tax reform proposals by mid-December, with the next phase of discussions focusing on the scale of the income threshold increase. While some parties have called for raising the threshold to 1.78 million yen, debates over funding and the redistribution of resources remain contentious. As poverty and inequality continue to rise, the challenge for policymakers is not only to create effective legislation but also to foster a culture where individuals feel supported and secure in seeking help.
Source: TBS