2024-07-13 06:18:52
The opposition party is raising objections regarding the comprehensive real estate tax reform proposed by Lee Jae-myung, the candidate running for re-election as the leader of the Democratic Party of Korea, as part of his “Muksanism” (making a living problem), saying that it “shakes the identity of the Democratic Party.” While the pro-Myeong faction is speeding up discussions on reforms, including the abolition of the comprehensive real estate tax for single-home owners, the non-mainstream pro-Roh and pro-Moon groups within the party are raising the argument of “opposing the abolition of the comprehensive real estate tax,” leading to a “line competition” between the mainstream and non-mainstream factions within the opposition party. The Cho Kuk Innovation Party has also joined the debate, arguing that it “opposes the abolition of the comprehensive real estate tax.”
● Pro-Roh and pro-Moon “Damage to identity” over Lee’s theory of tax reform
During the recent declaration of candidacy for party leadership, this candidate has continued to focus on livelihood issues, saying, “‘Muksanism’ (the issue of making a living) should be the only ideology.” This candidate’s proposal to reform the comprehensive real estate tax is also interpreted as a strategy to expand the center and the periphery through the livelihood agenda. An official from this candidate’s camp said, “As a former local government head, this candidate is very sensitive to the impact of the comprehensive real estate tax on public sentiment,” and “Easing the comprehensive real estate tax is a topic that should be considered, even if only to alleviate the suffering of the middle class.”
However, there are voices within the Democratic Party that call for caution regarding the revision of the inheritance tax, saying that it is an issue that “shakes the party’s identity.” In particular, criticism is continuing from some pro-Moon factions, including those from the Roh Moo-hyun administration that created the inheritance tax.
Kim Doo-kwan, the Democratic Party’s representative candidate who served as the first Minister of Government Administration and Home Affairs during the participatory government, criticized the proposal in a commentary that day, saying, “Proposing to readjust the comprehensive real estate tax is a direct denial of the foundation of the Democratic Party’s tax policy since former President Roh Moo-hyun,” and “He is not qualified to represent the party.” He continued, “This candidate should answer what relation the comprehensive real estate tax, which is levied on only 2.7% of all homeowners, has to the ‘problem of making a living. ’” Jin Seong-jun, the floor leader of the Policy Committee, also met with reporters the day before and opposed the discussion of the comprehensive real estate tax reform, saying, “It is an issue that does not need to be discussed.” Former Democratic Party lawmaker Yoo In-tae, a senior opposition party member, also said the day before, “(Touching the comprehensive real estate tax) could deny the Democratic Party’s identity.”
The Cho Kuk Innovation Party is also making clear its opposition to the abolition of the comprehensive real estate tax. Floor leader Hwang Un-ha said on the same day, “Our party is clearly opposed to the abolition of the comprehensive real estate tax,” and “We should compete with the Democratic Party in good faith on livelihood, tax, and fiscal policies.” Rep. Cho Kuk also revealed his opposition the day before, saying, “Even now, the Yoon Seok-yeol administration is pursuing a tax cut policy for the rich, resulting in a huge shortage of tax revenue.”
● Pro-Myeong faction considering ‘abolition of comprehensive real estate tax for single-home owners’
On the other hand, the pro-Myeong faction of the Democratic Party is arguing, led by floor leader Park Sung-joon, that the comprehensive real estate tax deduction limit for single-home owners should be raised to 1.6 billion won. Floor leader Park Chan-dae, who mentioned the “abolition of the comprehensive real estate tax for single-home owners” in May of this year, plans to hold the first seminar of the “Tax and Finance Research Association for Strengthening the Middle Class and Economic Growth” at the National Assembly on the 19th to discuss tax reform measures including the comprehensive real estate tax. It has been reported that the candidate also includes his thoughts on “competent progressive forces” in his book “The Republic of Korea that Lee Jae-myung Dreams of,” which is scheduled to be published on the 17th. A key official from the candidate’s camp said in a phone call, “It is time for the Democratic Party to demonstrate its alternative capabilities as a party preparing to take power.”
There is continued opposition within the opposition party regarding the postponement of the financial investment tax (FIT) mentioned by this candidate. This candidate’s side claims that the implementation of the FIT should be delayed, saying, “We must consider the situation where stock indices in other countries are rising while the Korean stock market is going against the trend.”
However, some argue that the gold investment tax, which was enacted in December 2020 during the Moon Jae-in administration, should be imposed as scheduled this time, as it has already been postponed once. Candidate Kim’s side criticized, “As of 2022, only about 150,000 people, or 1% of the total 14.4 million stock investors, are subject to the gold investment tax,” and “the postponement of the gold investment tax is in line with the widening gap in assets in our society.” Hwang, the floor leader of the Democratic Party, also said, “It seems that there will be growing pains as there is a right-wing shift within the Democratic Party.”
Reporter Yoon Da-bin [email protected]
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2024-07-13 06:18:52