野 "Severe Revenue Shortfall but Tax Cuts?... Will Push for Hearing on Fiscal Collapse"

Summary on Comprehensive Real Estate Tax and Others to Be Clarified by Democratic Party After July Government Proposal
Pension Reform Should No Longer Be Brought by Government
Stronger Proposal for Noran Bongtu Law Under Internal Party Discussion

The Democratic Party of Korea on the 18th pointed out issues such as tax revenue shortfalls and urged the preparation of measures to secure tax revenue before discussing tax cuts on comprehensive real estate tax or inheritance tax. They also decided to hold a hearing regarding the tax revenue shortfall issue.

Jin Seong-jun, the Democratic Party Policy Committee Chairman, and Min Byeong-deok, the Senior Deputy Chairman of the Policy Committee, held a press conference at the National Assembly on the same day and criticized the plans announced by the Presidential Office regarding the comprehensive real estate tax and inheritance tax, saying, "The current state already has severe tax revenue shortfalls and a disastrous fiscal condition, yet they are bringing up tax cuts again."

Regarding the internal discussions within the Democratic Party about revising the comprehensive real estate tax, they said, "There are some members within the party who hold such opinions, but personally, it is not the party's position." However, when asked whether it is certain that the direction will not go towards easing the comprehensive real estate tax, Jin responded, "How can one predict that?" leaving room for possibility. Jin said, "The direction regarding tax reform has not been decided yet," adding, "When the government presents the tax law amendment bill in July, we will organize the party's stance and respond accordingly, and continuously consult and reach agreements with the government and opposition parties." He also said, "It is clear that now is not the time for the government to lead tax cuts recklessly, but individually, there may be opinions that certain unreasonable points should be corrected."

[Image source=Yonhap News]

Regarding the fiscal situation, Jin said, "I think a hearing on the state of national finances is necessary," and added, "A hearing on tax revenue shortfalls and fiscal collapse is needed." He criticized, "It is time to urge fiscal authorities to reflect seriously. They are recklessly suggesting tax cuts without any sense of urgency." Jin explained that they are considering inviting witnesses for the hearing, including the Deputy Prime Minister for Economy, fiscal management authorities, and the Presidential Office Policy Chief.

Jin emphasized the necessity of the livelihood recovery support fund advocated by the opposition, saying, "At this point, we have no choice but to issue government bonds, but if it is truly necessary, we can boldly issue government bonds." Min added, "For small business owners, increasing sales is key. If sales increase, the four cost factors (interest, wages, rent, electricity) are not a big problem," and argued, "What we want to do to increase sales is the 250,000 KRW livelihood support fund for all citizens."

Regarding pension reform, the government has expressed a stance to bring forward reform plans. Jin said, "At the end of the last National Assembly session, with the decision of Democratic Party leader Lee Jae-myung, we agreed to accept a 13% insurance premium rate and a 44% income replacement rate, and proposed to legislate at least the parametric reform, but after that, the government rejected it and there has been no change in position," and demanded, "We now urge the government to present pension reform plans." He added, "Some say structural reform is also important, not just parametric reform, and of course it is important," and said, "We hope the government submits a comprehensive pension reform plan to the National Assembly. Then we will start discussions."

Regarding the amendment to the Labor Union and Labor Relations Adjustment Act, known as the Yellow Envelope Act, Jin said, "We will propose it as a party bill," adding, "There were many opinions that the labor rights should be strengthened more than the previous Yellow Envelope Act, which was vetoed, so we have not reached a conclusion yet. We will discuss further and finalize it as a party position before proposing it."