Takaichi Vs. The Tax 'Rebels'

It seems there are other LDP lawmakers who share their views but were more constrained in actively opposing the tax cut.

Takaichi declined to comment on the protest, but other LDP leaders are furious and even called for them to resign their seats. LDP policy chief Takayuki Kobayashi warned that they could face punishments for their failure to vote in accordance with party instructions.

After the vote, the“rebels” reiterated their concerns about the bill's impact on the government's finances, the risk to the social security system and the reality that the expiration of the tax cut in two years could mean an effective tax increase for most taxpayers.

The fiscal hawks' rebellion adds to the problems that Takaichi faces as the legislation heads to the upper house, where the government lacks a majority. The government failed to convince any opposition party to back the tax cut in the lower house and has already conceded to the creation of the ad hoc committee to deliberate on the tax cut in the upper house, in which opposition parties outnumber the ruling parties twenty to nineteen (with the LDP's Yoshifumi Matsumura chairing).

The committee cannot stop the legislation from reaching the whole house, because legislation referred from the lower house has to go to a plenary session, giving the committee more of an advisory role.

But it will nevertheless hold a more extensive debate on the legislation that could air many of the grievances highlighted by Ishiba and the others – which will presumably get more attention in the coming days, given how unusual this kind of protest on a government bill is.

Opposition parties have flagged other issues with the bill, including the lack of details about how additional subsidies will be distributed, the lack of details about how the tax cut will be financed, and the lack of details about support for businesses managing the costs and impact of implementing the tax cut.

Takaichi's suggestion in questioning Friday that additional payments could go to roughly 30% of workers will likely do little to sway her opponents. The Upper House's deliberations will begin on 11 November.