Opposition Shows Willingness to Ease Comprehensive Real Estate Tax Burden for Single Households with Two Homes
[Asia Economy reporters Lee Ji-eun and Naju-seok] Attention is focused on whether a new breakthrough in compromise will be made as the floor leaders of both ruling and opposition parties participate in the ‘consultative body’ for budget agreement.
On the 6th, Joo Ho-young, floor leader of the People Power Party, and Park Hong-geun, floor leader of the Democratic Party of Korea, are scheduled to hold 2 to 3 rounds of closed-door consultations presided over by National Assembly Speaker Kim Jin-pyo. The existing ‘2+2 consultative body,’ which involved policy chiefs and budget committee secretaries from both parties, has been officially expanded to a ‘3+3’ consultative body.
In fact, it is known that some level of agreement was reached on the budget, which is less contentious, during the 2+2 consultations held until the day before. Kim Sung-hwan, policy chief of the Democratic Party, told reporters on the day, "There were consultations over two days on contentious budget issues, and some matters were agreed upon." He also stated that regarding the budget-related subsidiary bills processed together with the budget, the burden of comprehensive real estate tax on households with two homes whose asset value is less than that of one-home households would be minimized.
Although specific details were not disclosed, it appears that some agreement has been reached on budgets related to people’s livelihoods and subsidiary budget bills.
However, it remains uncertain whether the ruling and opposition parties can reach a final agreement on the budget for the presidential office relocation, the youth cost-price housing budget known as the ‘Yoon Seok-yeol budget,’ and the public rental housing budget known as the ‘Lee Jae-myung budget.’
Floor leader Joo said at the floor leaders’ countermeasure meeting held that morning, "Although the budget bill has passed the legal deadline for processing, it has never exceeded the regular session period since 2014, so I believe the budget will definitely be processed within the regular session period (December 9) this year as well," putting pressure on the opposition party.
He evaluated, "There has been considerable progress in the 2+2 consultative body involving policy chiefs and budget committee secretaries from both parties, so the burden has somewhat eased," adding, "I hope that even in the remaining period, we will put our heads together as much as possible, make concessions where necessary, and ensure the budget passes within the deadline."
However, the opposition party expressed that they would not easily cooperate, saying that the government budget does not show a national policy direction. Floor leader Park said, "Looking at the government’s budget, it is unclear what the Yoon Seok-yeol administration’s principles are or what it intends to do," emphasizing, "We will engage in negotiations based on the major principles of ‘withdrawal of ultra-rich tax cuts, reduction of illegal enforcement ordinances and wasteful budgets, and warm livelihood budgets.”
He added, "Welfare spending is increasing, and tax revenue is decreasing due to ultra-rich tax cuts, so I cannot understand how they intend to maintain sound fiscal management. They are only cutting livelihood budgets such as housing for low-income groups, vulnerable groups, youth Tomorrow Employment Deduction, and public jobs," evaluating it as "a pathetic budget full of Yoon’s heart (Yunshim) with no consideration for ordinary people."
Floor leader Park said, "If the government and ruling party actively accept the demands of the Democratic Party and the people, the budget bill can be processed immediately," adding, "If the government and ruling party understand the public’s anxious feelings, there should be no political maneuvering linking it to the dismissal of Minister of the Interior and Safety Lee Sang-min, and instead of delaying, they should conclude budget negotiations through bold adjustments and concessions."
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