Ando Geol, Yoon Seok-yeol Government Faces Continuous Criticism Over 'Tax Cuts for the Rich'

“Far from the trickle-down effect, economic recession and tax revenue shortfall”
“Measures needed to shift overseas consumption and investment to domestic”

Ando-geol Assemblyman

Democratic Party of Korea lawmaker Ando-geol (Gwangju Dongnam-eul) continued his fierce criticism on the second day of the Ministry of Economy and Finance’s parliamentary audit held at the National Assembly on the 11th, calling the Yoon Seok-yeol administration’s tax cuts for the wealthy, touted for their economic growth effects, a ‘failed policy.’

Ando-geol stated, “While the government promoted tax cuts for the wealthy, it presented rosy forecasts such as a 46 trillion won increase in GDP and an additional 8.4 trillion won through corporate tax and temporary investment tax credits. However, following last year’s record low growth and a 56 trillion won tax revenue shortfall, domestic demand is in a state of stagnation. Facility investment contracted by 2% in the second half of last year and 1.8% in the first half of this year, while private consumption has continued low growth in the 1% range since the second quarter of last year.” The government had projected tax revenue of 419 trillion won for this year in the 2022?2026 medium-term fiscal plan but ultimately saw a decrease of 81 trillion won.

Ando-geol criticized, “The Yoon Seok-yeol administration’s loud policy effects of virtuous cycles of growth and tax revenue, and the expansion of mid- to long-term revenue bases were all lies.”

Regarding the reason why the trickle-down effect of tax cuts does not occur, Ando-geol pointed out that a significant portion of the increased investment and consumption capacity of large corporations and high-income and asset owners due to tax cuts is being transferred overseas.

He noted, “While domestic consumption growth has slowed, overseas consumption has been increasing annually. Overseas investment has also significantly increased over the past three years, centered on the United States, contrasting with the decline in domestic facility investment.”

Ando-geol further emphasized, “The tax cut policy, which has already been proven a failure, must be abolished. Above all, urgent measures are needed to redirect consumption and investment, which are flowing overseas, back to the domestic market.”