"Income Tax Cuts Needed for Low-Income People Unable to Pay Property Tax"
"US Pushes Corporate Tax Increase to Curb Inflation... Yoon Must Fully Reconsider Corporate Tax Cuts"
[Asia Economy Reporter Naju-seok] Park Yong-jin, a member of the Democratic Party of Korea, expressed opposition to Lee Jae-myung’s proposals for a ‘temporary suspension of fuel tax’ and a ‘temporary ban on short selling,’ saying, "These are not at all agendas befitting the Democratic Party." Park advocated for a temporary reduction in income tax and a reconsideration of corporate tax cuts.
On the 27th, Park stated via social media (SNS), "The Democratic Party has the responsibility to lead the agenda for the livelihood of ordinary people in the face of rising prices," but added, "Lee’s proposals for a ‘temporary suspension of fuel tax’ and a ‘temporary ban on short selling’ are not at all agendas befitting the Democratic Party."
He argued, "As everyone knows, the fuel tax is not paid directly by the public but by oil refiners," and said, "It is like giving wings to the enormous excess profits of oil refiners." Park pointed out, "During COVID-19, when domestic oil refiners suffered operating losses in the trillions due to negative margins, a temporary payment deferral was implemented, but now is not a period of falling oil prices but an era of high oil prices."
Regarding the fuel tax, Park mentioned that the Democratic Party had previously advocated for recovering excess profits from oil refiners, that the effect of reducing the fuel tax has been nullified by rising oil prices, and the regressive nature of the fuel tax imposed based on consumption volume. He said, "While temporary reductions and flexible tax rates to alleviate the livelihood difficulties are inevitable, suspending the fuel tax, which is estimated to reduce tax revenue by over 2 trillion won, is not at all befitting the Democratic Party."
On the proposal to ban short selling, he said, "In a situation where stock prices have already sharply plummeted, the positive function of short selling in preventing price bubbles should be maintained while minimizing illegal short selling that strangles retail investors," adding, "We cannot burn down the whole house to catch a flea."
Pointing to the rising prices of most consumer goods, Park criticized, "In this situation, how much would suspending the fuel tax and short selling help the wallets of ordinary people? It would only be like urinating on frozen feet to relieve their livelihood difficulties." He added, "I argue that we should respond to inflationary pressure through a ‘tax cut for ordinary people’ by temporarily reducing income tax for those who do not pay property tax."
Furthermore, regarding the Yoon Seok-youl administration’s plan to cut corporate tax, he insisted, "It should be fully reconsidered." He noted, "The Biden administration in the U.S. has already declared a corporate tax increase to reduce corporate spending and total demand to calm inflation," and pointed out, "In an inflationary situation, expanding corporate investment could rather further fuel price increases." He advised, "I hope the Yoon Seok-youl administration breaks away from the dogma of tax cuts for the wealthy and practices politics that uses a broad playing field as an inflation fighter to solve the livelihood difficulties of ordinary people."
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