ID :
196587
Fri, 07/22/2011 - 14:50
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Shortlink :
http://m.oananews.org//node/196587
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Child benefits may be cut if after-tax income above 10 million yen
TOKYO, July 22 Kyodo - Prime Minister Naoto Kan's ruling party, seeking to win opposition cooperation over a key budget-related bill, proposed Friday to cut the amount of child allowances to be paid to families with an annual after-tax income of 10 million yen or more.
The Democratic Party of Japan's concession plan says that the current monthly payment of 13,000 yen for every child under 15, regardless of income, will be reduced to 9,000 yen if the head of the household receives take-home pay exceeding 10 million yen each year.
The child allowance program was one of the DPJ's most important campaign pledges for the general election in August 2009, through which the party came to power.
The Liberal Democratic Party and its smaller opposition ally New Komeito have made the program's review as an absolute precondition for their cooperation in passing the bill that is essential for the government to be able to issue deficit-covering bonds to secure about 40 percent of the revenue planned in the budget for fiscal 2011.
The bill's enactment is also one of the conditions the embattled prime minister has set for his resignation.
The DPJ and the two major opposition parties -- which have urged that only families whose annual income is less than 8.6 million yen be allowed to receive child allowances -- will negotiate the latest proposal next week, lawmakers said.
Under the proposal, those eligible for the program who have a child under the age of 3 will be paid 15,000 yen each month, up 2,000 yen. But the rest will basically receive 10,000 yen until their child graduates from junior high school.
The Democratic Party of Japan's concession plan says that the current monthly payment of 13,000 yen for every child under 15, regardless of income, will be reduced to 9,000 yen if the head of the household receives take-home pay exceeding 10 million yen each year.
The child allowance program was one of the DPJ's most important campaign pledges for the general election in August 2009, through which the party came to power.
The Liberal Democratic Party and its smaller opposition ally New Komeito have made the program's review as an absolute precondition for their cooperation in passing the bill that is essential for the government to be able to issue deficit-covering bonds to secure about 40 percent of the revenue planned in the budget for fiscal 2011.
The bill's enactment is also one of the conditions the embattled prime minister has set for his resignation.
The DPJ and the two major opposition parties -- which have urged that only families whose annual income is less than 8.6 million yen be allowed to receive child allowances -- will negotiate the latest proposal next week, lawmakers said.
Under the proposal, those eligible for the program who have a child under the age of 3 will be paid 15,000 yen each month, up 2,000 yen. But the rest will basically receive 10,000 yen until their child graduates from junior high school.
