System Flaws Lead to 'Foreigner First' Policies: 'Tax-Exempt Households' and Benefit Payments to Foreigners in Japan's Welfare System

In recent years, various benefits have been provided by national and local governments to address issues such as rising prices. Among these, there are cases where foreigners who have just arrived in Japan are also eligible for these benefits, leading to criticism that the system is 'foreigner first'.

Why is it that foreigners who have just arrived in Japan can sometimes receive benefits funded by precious tax money, which can be called blood tax? This is because the eligibility criteria for these benefits are based on whether a household is a 'resident tax-exempt household'.

How the system works: Tax-exempt households determined by the previous year's income

Tax-exempt households eligible for benefits refer to households that are not subject to resident tax for that year. Resident tax is determined based on the income of the previous year.

For example, the 2024 resident tax is based on income from January 1 to December 31, 2023.

In the case of a foreigner who just arrived in Japan in 2024 for work purposes, they were not residing in Japan in 2023 and naturally had no income in Japan. Therefore, in the calculation of the 2024 resident tax, their income is zero, and as a result, they are treated as a 'resident tax-exempt household'.

This mechanism of the system is the main reason why foreigners who have just arrived in Japan become eligible for benefits.

Criticism and challenges of the system

It is a fact that there is criticism regarding this situation, such as 'it is strange to provide benefits to foreigners who have not paid taxes' and 'as a result, foreigners are being treated more favorably than Japanese people.' It is believed that the following concerns lie at the root of these criticisms.

• Issue of fairness: Is it not unfair for citizens who have lived in Japan for a long time and fulfilled their tax obligations to receive benefits under the same criteria as foreigners who have just arrived and have no record of paying taxes?

• Issue of financial burden: Questions regarding the use of taxpayers' money for people who have no history of paying taxes.

Is it possible to review the system?

In response to such criticism, changing the eligibility conditions for benefits to include requirements like 'having lived in Japan for at least X years' could be considered as a solution. The idea is to ensure fairness by adding tax payment history or length of stay as conditions.

However, careful discussion is required to carry out such a review.

• Accurate tracking of residency periods: If residency duration is made a condition, each local government would need to accurately track the residency periods of foreigners and conduct individual screenings. This could lead to an increase in administrative costs.

• Human rights issues: Differentiating eligibility for benefits based on nationality or length of stay could be pointed out as a problem from a human rights perspective by left-wing politicians.

Summary

The reason foreigners who have just arrived in Japan for work purposes can receive benefits is that the current benefit system is based on 'households exempt from resident tax based on the previous year's income.' This does not mean that specific individuals or nationalities are being favored; it is a result that arises from the system itself.

However, it is understandable that there is criticism regarding people receiving benefits without having a record of tax payments. In the future, designing a system that balances fairness with administrative efficiency will likely be discussed as a challenge for society as a whole.

By leaving these points, which could be called systemic flaws, unaddressed, politicians are fueling the perception that the system is 'foreigner-first'.