In response to No’s criticism of “cancellation of life-friendly projects”
Choi: “Budget reduction – there is nothing we can do about it”
Consideration of introducing ‘income tax price indexation system’
Deputy Prime Minister and Minister of Strategy and Finance Choi Sang-mok announced that a decrease in local allocation taxes and local education financial grants is inevitable this year.
Deputy Prime Minister Choi said at the National Assembly’s Planning and Finance Committee audit on the 11th, “Adjustment of grants and grants is inevitable due to tax revenue deficit.” Previously, when Rep. Hwang Myeong-seon of the Democratic Party of Korea pointed out, “Last year, due to the unprecedented tax revenue collapse, the budget that should have gone to each local government and the office of education was reduced or disused, and projects closely related to daily life were canceled,” he said that such reductions and disuse were inevitable this year as well. revealed.
According to the current law, about 40% of domestic taxes are allocated to local allocation taxes and grants. If national taxes decrease, the budget allocated to local governments will inevitably decrease accordingly. The money that the central government distributes to local governments and city and provincial offices of education nationwide is called local allocation tax and grants, respectively. This year, total national taxes, including domestic taxes, are expected to decrease by 29.6 trillion won. However, Deputy Prime Minister Choi said, “There were some shortcomings in communication with local governments during last year’s mediation process. “I will do my best this year,” he added.
Opposition lawmakers claimed that the large tax revenue deficit for two consecutive years was due to ‘tax cuts for the rich.’ Rep. Park Hong-geun of the Democratic Party said, “The Yoon Seok-yeol government is a kingdom of unprecedented tax cuts. “This is a situation where there is no choice but to have a hole in the finances,” he criticized. In response to this, People Power Party lawmaker Park Soo-min said, “The tax cut for the rich that my fellow lawmakers are worried about does not exist, but the tax revenue deficit is not caused by that. “The problem is that tax sources are not structurally increasing,” he said.
Deputy Prime Minister Choi said, “We will comprehensively review the introduction of the ‘income tax price index system,’ which reflects the increase in prices when calculating income tax.” The income tax price indexation system is a system that reduces the actual tax burden by changing the tax base range when prices rise.
Sejong = Reporter Song Hye-mi [email protected]
-
- great
- 0dog
-
- I’m sad
- 0dog
-
- I’m angry
- 0dog
-
- I recommend it
- dog