Democratic Party for the People (DPP) leader Yuichiro Tamaki has long been viewed in Japan as a ‘pro-crypto’ politician for aiming to establish a separate, 20% tax rate. However, residents of the country are now biting back at the scandal-embroiled figure after a post on X suggested the party actually aims to increase taxation to 30% for some earners.
“I would like to apologize for arguing with X without fully understanding these policies of my own party,” Japan’s DPP leader, Yuichiro Tamaki, told his followers on social media Sunday (JST). Tamaki is famous with cryptocurrency advocates in the land of the rising sun as a ‘pro-crypto’ politician aiming to establish a separate 20% tax for crypto assets.
However, the currently suspended DPP leader, who has been embroiled in scandals related to an extramarital affair, has gone a bit mealy-mouthed as of late and crypto fans aren’t happy. Cryptocurrencies can currently be taxed at up to 55% in Japan, and actually up to an unbelievable 110% in cases where inheritance tax is applied — something Bitflyer exchange CEO Yuzo Kano has said “would shock even communists.” Kano also weighed in on Tamaki’s recent backpedaling, declaring he is against increasing taxes.
Tamaki confuses followers, waffling on tax rhetoric after Davos fun
Until yesterday, it was commonly understood that the aim of the DPP was to establish a separate rate for crypto taxation at 20%, but Tamaki’s Sunday post to X has him declaring that the party’s official goal is actually to increase taxes on high-income individuals. Indeed, he officially said in October last year the goal was 20% separate taxation for crypto without mentioning anything about a 30% rate.
After an apparent argument on the X platform in since-deleted posts, the politician said he would look into his party’s official positions and check back in with users. When he did, he apologized for being unaware of his own organization’s policy.
“It is true that in the campaign pledges for the House of Representatives election, the party called for ‘comprehensive taxation of financial income’ and ‘increased taxation on the wealthy and high-income earners’ in order to correct disparities,” the politician wrote (translated by Google). He went on to clarify: “Therefore, for the time being, a separate tax rate of 20% will be imposed [should the DPP succeed] on financial assets, including cryptocurrencies, but in the future, it is likely that consideration will be given to imposing a 30% tax rate on ‘high-income earners.’”
Basically, opting for “comprehensive taxation” would result in a reduction of taxes for lower-income earners who wouldn’t be benefited by a flat 20% rate on crypto, and high-income earners would opt for the 30% separate rate to save money, instead of comprehensive taxation. This is what Tamaki now says is the DPP’s vision, at least.
However, the comments are full of followers and crypto advocates calling Tamaki’s statements and positions confusing, hypocritical, and harmful to the struggling populace of Japan. They ring especially hollow to those battling inflation, basically non-existent pensions, and a higher and higher cost of living every day, when the politician has been busy posting pictures of himself at posh parties, schmoozing with the Davos ilk at the World Economic Forum in January.
One of the most popular replies states: “I’m sick of it. This will hit hard on those who are trying to reduce their sense of taxation through investment. It is unjust to impose further taxes on those who are already feeling the most taxed. Please start by cutting wasteful government spending.” Another user wrote: “If we really want to reduce the disparity, why not start by lowering the salaries of politicians?”
Ironically, this is one of the reasons for crypto’s rise to popularity in the first place: starving parasitic politicians and states of their ability to pilfer the populace.
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