Corporate Tax Cuts for Ultra-Wealthy, Including Tax Rate Reduction, Are Non-Negotiable
[Asia Economy reporters Naju-seok and Park Joon-yi] The Democratic Party of Korea explained that it plans to ease the comprehensive real estate holding tax burden for owners of two houses with low asset value.
Kim Seong-hwan, chairman of the Democratic Party's Policy Committee, said at a press briefing on the 6th, "There is an unfair part where households with two houses but lower asset value bear a heavier burden than single-household owners, so we intend to minimize that burden." He added, "The current standard for a single household with one house is 1.1 billion KRW, but there is an issue where owning a small house in Gangbuk valued at over 600 million KRW makes one subject to the comprehensive real estate holding tax. Our party intends to resolve such issues."
Regarding specific methods, he said, "I have also submitted a bill, and the government has various opinions, but we are conducting internal reviews within our party on what would be the most reasonable and effective approach." He added, "I understand that the Planning and Finance Committee is also considering various aspects."
However, he also stated that there is a firm stance against compromise on matters related to tax law, such as raising corporate tax, increasing the threshold for capital gains tax on stock transfers, and progressive taxation on owners of three or more houses.
Chairman Kim said, "There are three examples of tax cuts for the ultra-rich: lowering the top corporate tax rate for companies earning over 300 billion KRW in profits, raising the non-taxable threshold for capital gains tax on stock transfers linked to financial investment tax from 1 billion KRW to 10 billion KRW, and progressive taxation on owners of three or more houses under the comprehensive real estate holding tax. These are tax benefits for the top 0.01% super-rich in Korea, so it is difficult to make concessions."
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