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Japanese opposition party draws up 'Yurinomics' to counter 'Abenomics'

Japan's opposition Party of Hope, led by Tokyo Governor Yuriko Koike, has unveiled plans to reduce reliance on extraordinary economic stimulus by taxing companies' reserves to spur them to spend, and for a basic income for all citizens, media reported.

Almost two weeks ahead of the Oct. 22 snap election called by Japanese Prime Minister Shinzo Abe, the opposition Party of Hope said it wanted to replace so-called "Abenomics" with "Yurinomics," which will include freezing a sales tax hike planned for 2019 and helping poorer households with a regular basic income, Reuters said.

"We'll carry out 'Yurinomics' that brings out private sector vitality, without relying excessively on monetary easing and fiscal spending," the party said, according to the newswire.

Koike wants to focusing on deregulation and to tax companies' ¥300 trillion in internal reserves to prompt them to invest. The plan would affect the nation's biggest companies, including Mitsubishi UFJ Financial Group, Honda Motor Co. and Nippon Nippon Telegraph & Telephone Corp., Bloomberg News said.

Toyota, the country's most valuable company and biggest employer, had retained earnings of about ¥17.6 trillion, more than the entire market value of any other Japanese company, the news source said.

The Party of Hope would favor continuing extraordinarily easy monetary policy in the near term, but would seek a smooth exit. Bank of Japan Governor Haruhiko Kuroda, who was appointed by Abe, does not want to discuss winding down the stimulus program any time soon.

Koike vowed to end homophobic discrimination and rid Japan of nuclear power by 2030.

"We are including issues other parties haven't been able to tackle," she told reporters in Tokyo, according to Bloomberg.

The party leader also confirmed that she will not run for a seat in the lower house in the election.

An Oct. 5 voter poll by The Asahi Shimbun showed 35% respondents said they would vote for Abe's Liberal Democratic Party, while Yuriko Koike's Party of Hope had 12% support.

As of Oct. 5, US$1 was equivalent to ¥112.64.