Senior ruling party lawmaker Sanae Takaichi will propose an income tax cut and direct cash handouts to households as part of her platform for the upcoming Liberal Democratic Party leadership race, the Nikkei reports.The pledges are aimed at easing the strain of persistent inflation on consumers and bolstering support ahead of the October 4 vote to replace outgoing Prime Minister Shigeru Ishiba. Takaichi’s proposals would mark one of the most aggressive fiscal stimulus promises so far in the race, with both tax relief and household transfers likely to resonate strongly with voters and party members alike.Her campaign platform underscores how economic policy and measures to address the cost-of-living squeeze are becoming central themes in the leadership contest, which will determine the next LDP president and, by extension, Japan’s next prime minister. ---Market-impact thoughts on this:Equities: Consumer-focused measures could support domestic demand sectors.Bonds: Proposals raise questions about fiscal discipline, adding pressure to JGB outlook.Politics: Leadership race outcome will shape Japan’s fiscal stance and policy mix. This article was written by Eamonn Sheridan at investinglive.com.