"Earned Income Tax Burden Rate Increasing in Korea"
"Basic Deduction for Earned Income Tax Must Be Realized"
Lee Jae-myung, leader of the Democratic Party of Korea, expressed his intention to reform the earned income tax, stating that "this is not a matter of left or right, but a fundamental issue of fairness."
On the 2nd, Lee said on his Facebook, "While the overall tax burden rate in our country has decreased due to tax cuts for ultra-rich large corporations, the tax burden rate on earned income tax has reportedly increased." He pointed out, "It rose from 1.6% in 2015 to 2.4% in 2024 relative to Gross Domestic Product (GDP). This is why the phrase 'Are salaried workers slaves?' keeps circulating."
Lee Jae-myung, leader of the Democratic Party of Korea, is speaking at the Democratic Party of Korea-Small Business Federation Livelihood Economy Field Meeting held on the 2nd at the Small Business Federation conference room in Yeongdeungpo-gu, Seoul. Photo by Yonhap News
He continued, "Meanwhile, prices have continuously risen, but the basic deduction for earned income tax has remained unchanged for 16 years since it was raised from 1 million won to 1.5 million won in 2009," adding, "This amounts to a de facto 'forced tax increase'." He emphasized, "'The lives of the 20 million salaried workers are the livelihood of the people, and correcting unfairness is the responsibility of politics.' It is urgent to implement policies that realize the basic deduction for earned income tax to protect the wallets of salaried workers and increase their disposable income."
Meanwhile, on the same day, Lee held a livelihood economy meeting with officials from the Korea Federation of Small and Medium Business in Yeouido, Seoul, saying, "Taking care of the people's lives is the fundamental duty of politics, but I feel a great sense of responsibility as the economy has worsened because of politics." He said, "The economy's lifeblood is stability and predictability, but society has fallen into instability due to the military coup on December 3 last year," adding, "These days, the local commercial districts are deteriorating so much that it is embarrassing to show my face."
He expressed regret that "(politics) does not pay attention to the livelihood field. We (the Democratic Party) also have the fault of not perfectly solving that problem," and said, "I hope we can all join forces to overcome the crisis."
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