Before You Vote, Learn the Tax
By Keiji Sakai
February 2026 has arrived. On the 6th, the Winter Olympics will open in Milan and CortinadʼAmpezzo̶names that sound stylish even before the games begin. Milan is a city known theworld over, yet this will be its first time hosting the Olympics. At a moment when wars andinstability persist across the globe, one hopes that even a brief stretch of days devoted to sportmight allow people everywhere to reset their emotions, if only slightly.
Japan, too, has reason to watch closely. In figure skating and snowboarding, among otherevents, a new generation of athletes is expected to shine. Some are still in their teens. InOlympic terms, an 18-year-old is considered an emerging talent; four years later, at 22, theyare in their prime; four years after that, at 26, they may already be labeled a veteran. Seenthrough that lens, the Olympics̶held every four years̶can also serve as a quiet invitationto look back on our own past four years and ask what has changed.
Meanwhile, politics has once again moved quickly toward an election. Questions remain aboutthe prime ministerʼs power to dissolve parliament, but let us set those aside for now and thinkmore broadly about politics itself. In this election, a reduction in the consumption tax 消費税has emerged as a major theme. Debates over taxes and the budgets they support are amongthe most important tasks of politics. Yet how many citizens truly understand the structure ofthe consumption tax?
Most people know the basics: a standard rate of 10 percent, with a reduced 8 percent rate forfood and newspaper subscriptions. But the picture grows murkier when one learns thatresidential rent, social insurance medical services, and bank interest are tax-exempt; exportsare zero-rated; and wages, insurance payouts, dividends, and government subsidies falloutside the scope of taxation altogether. At that point, many are left wondering: what does“non-taxable” really mean?
One can almost hear the response: “None of that matters.” But it should. It is difficult̶if notimpossible̶to have a meaningful debate about reforming a tax system that affects more than100 million people without first understanding how it works. One reason taxes may feelabstract in Japan is the year-end adjustment system for income tax. Because tax calculationsare completed by employers, most people rarely interact directly with the tax authorities, andthe reality of taxation can feel distant.
According to statistics from the National Tax Agency, there were about 60 million salariedworkers in 2023. In contrast, the number of eligible voters in this election stands at roughly103.5 million. In other words, more than half of voters have their tax obligations settledthrough year-end adjustment alone̶setting aside executives, side-job earners, and thosewith no income at all.
When we think about politics, an understanding of taxation is indispensable. Every electionseason, I am reminded of the weight of my profession as a tax accountant. Before heading tothe polls, perhaps it would not hurt to spend a little time studying the consumption tax.
After all, democracy works best when voters know what they are voting about.
