Democrats "Need to Expand Inheritance Tax Deduction Limits for Middle-Class Housing Stability"

Democratic Party's Floor Strategy Meeting on the 18th
"Spousal Deduction to Increase from 500 Million to 1 Billion Won, Blanket Deduction from 800 Million to 1 Billion Won"
Firm Opposition to People Power Party's Proposal to Lower the Top Tax Rate

Jin Seong-jun, the Policy Committee Chairman of the Democratic Party of Korea, stated, "It is necessary to expand the deduction limits of inheritance tax to ensure housing stability for the middle class and the elderly."

At the Democratic Party's floor strategy meeting held at the National Assembly in Yeouido on the 18th, Chairman Jin said, "The Democratic Party intends to raise the spousal deduction from 500 million won to 1 billion won and the blanket deduction from 500 million won to 800 million won in order to realize the adjustment of inheritance tax deduction limits."

Chairman Jin added, "This was a proposal the Democratic Party pursued during the last regular session of the National Assembly and was discussed alongside the government's inheritance tax amendment bill in the Finance and Economy Committee," and said, "However, it was not passed due to the People Power Party's obsession with tax cuts for the ultra-wealthy, such as lowering the top tax rate."

He emphasized that the Democratic Party's goal is to prevent an increase in the tax burden on the middle class. He said, "Since the amendment of the Inheritance Tax Act in 1996, housing prices have soared for 28 years," and added, "Especially, housing prices in the Seoul metropolitan area have risen to absurd levels." He continued, "As a result, the inheritance tax burden on middle-class families owning a single home has also surged," and added, "There are even cases where people have to sell their homes to pay inheritance tax."

He further stated, "We can never accept the People Power Party's proposals for tax cuts for the ultra-wealthy, such as lowering the top tax rate or abolishing the controlling shareholder surcharge," and said, "While preventing excessive tax burdens on the middle class and ordinary citizens, the positive functions of inheritance tax, such as wealth redistribution and providing fair opportunities, must continue."

In conclusion, he emphasized, "Since the People Power Party also agrees to raising the spousal and blanket deductions, we urge them to abandon partisan thinking and cooperate in amending the Inheritance Tax Act."