The recently established cabinet under Prime Minister Sanae Takaichi is initiating discussions on a temporary consumption tax reduction. Takaichi asserts that the proposed tax cut is merely a 'stopgap' measure, with the focus ultimately placed on the introduction of a 'tax credit with benefits' system as a significant policy component. During a press conference, the Prime Minister stated that the objective is to alleviate the burdens faced by low- and middle-income households, particularly due to rising social insurance premiums that significantly impact their take-home pay. Moreover, as the population continues to age, social insurance premiums borne primarily by the working generation have increased notably. Research from Daiwa Institute indicates that for households with two or more earners, the monthly insurance premium burden has more than doubled from an average of 31,780 yen in 1989 to an anticipated 69,036 yen in 2024. In contrast, several Western countries have developed robust benefits systems designed for low-income individuals, where the financial aid significantly outweighs the tax and insurance payments, highlighting a critical deficiency in Japan's existing support structure for low-income earners. In light of these circumstances, senior officials from the Ministry of Finance acknowledge the necessity for a response concerning workers who are earning low incomes yet are not receiving any welfare support. This acknowledgment underpins the strategic intent behind Takaichi’s proposed 'targeted take-home pay supplement' as a fundamental measure intended to better support these vulnerable demographics in the labor market.