Kobayashi vows income tax cut for LDP leadership race
Former Japanese economic security minister Takayuki Kobayashi on Tuesday formally announced his candidacy for the ruling Liberal Democratic Party's upcoming presidential election, proposing a fixed-rate income tax cut as a centrepiece of his policies.
On the reason for his decision to run in the Oct. 4 election to pick the successor to LDP President Shigeru Ishiba, the country's outgoing prime minister, Kobayashi, 50, said: "I'll reboot the party. We need to switch over to a younger generation."
Kobayashi sounded cautious at the moment about the idea of inviting more parties to the ruling coalition of the LDP and Komeito, saying, "Number-juggling before the LDP decided on its basic stance (over the structure of the coalition) is like putting the cart before the horse."
On the proposed tax cut, mainly targeting young people and working generations, Kobayashi said that an upper limit would be set to avoid preferential treatment for high-income earners.
Saying that he wants to establish "an ideal income tax system that can support the middle-income class," Kobayashi voiced hopes to conclude within about a year. The measure would be in place for about two years, according to Kobayashi.
On security, he stated that the country's defence spending, equivalent to 2 % of its gross domestic product, is "not enough," proposing a revision to the national security strategy to increase such spending.
Kobayashi also said that he will aim for a constitutional amendment prioritising the inclusion of the Self-Defence Forces and the establishment of an emergency clause, to have Japan's parliament propose a revision of the national charter while he is in office as LDP president if he is elected.
While not denying the possibility of a consumption tax cut, as proposed by opposition parties, as a future option, Kobayashi said, "We won't cut the tax as a measure to address inflation."
He, however, said that he aims to achieve an increase in wages by boosting employment through investments in rural areas.
Also on Tuesday, Agriculture Minister Shinjiro Koizumi, 44, and Chief Cabinet Secretary Yoshimasa Hayashi, 64, voiced intent to run in the upcoming party election.
"I told my supporters of my plan (to file my candidacy)," Koizumi said at a press conference. "I'll do what I need to do one by one toward a formal (candidacy) announcement," he added.
Koizumi also said that his campaign team will be led by Finance Minister Katsunobu Kato.
Hayashi told reporters, "I hope to inherit Prime Minister Ishiba's aspirations to run this country." He said he will put weight on wage hikes. Hayashi plans to hold a press conference later this week to explain his policies.
Both Kobayashi and Koizumi tried their hand at being LDP leader for the first time in last year's party presidential election, which was eventually won by Ishiba.
Hayashi ran in the LDP presidential races in 2012 and 2024.
Former LDP Secretary-General Toshimitsu Motegi, 69, has already announced that he will run for LDP presidency in next month's election.
Former economic security minister Sanae Takaichi, 64, is expected to hold a press conference by the end of this week to announce her candidacy. She ran in the party leadership races in 2021 and 2024.
