The Korea Herald

피터빈트

Opposition warns of all-out war over tax proposal

By 윤민식

Published : Aug. 9, 2013 - 15:55

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The main opposition Democratic Party said Friday that it would engage the Park Geun-hye administration in an “all-out war” if necessary to block the proposed tax code revision which would increase the tax burden on salaried people.

In a press briefing, DP spokesman Park Yong-jin declared that the DP would defend the middle class even though “President Park Geun-hye broke her promise and Cheong Wa Dae has abandoned the common people.”

Under the proposed revision, about 4.3 million people will see their tax burden increase from 2014.

DP Chairman Rep. Kim Han-gil honed in on President Park Geun-hye’s campaign pledges regarding expanding welfare, grouping the proposed tax code revision with the changes in her economic democratization policies as “going against the livelihood of the people.” 

Jun Bung-hun (right), Democratic Party floor leader, shows a transparent envelope highlighting the possible tax burden increase on salaried people under the new government policy. At his side is chairman Kim Han-gil. (Ahn Hoon/The Korea Herald) Jun Bung-hun (right), Democratic Party floor leader, shows a transparent envelope highlighting the possible tax burden increase on salaried people under the new government policy. At his side is chairman Kim Han-gil. (Ahn Hoon/The Korea Herald)


“The tax code revision proposal means that only the pockets, the glass wallets of salaried workers will be raided while leaving large companies and the rich untouched,” Kim said at the DP’s supreme council meeting Friday.

The term “glass wallet” refers to salaried workers whose income is automatically tallied.

“However, the tax code is established according to the law. The DP, the party of the middle class and the common people, will not stand by while the tax law passes as it is now.”

DP floor leader Rep. Jun Byung-hun also attacked Park and her campaign pledges, saying that her policies would open an “era of tears” for the middle class.

One of Park’s main campaign pledges was “opening an era of happiness” and expanding the middle class to include 70 percent of the population.

Faced with increasing criticism, Cheong Wa Dae’s chief economy secretary Cho Won-dong apologized for the drop in tax returns, saying that he had no excuse for that aspect of the tax code revision.

“I am sorry about that part. I could not provide an explanation even if had 10 mouths, (I) ask for your understanding,” Cho said. He added that salaried workers tend to have “slightly better conditions.”

However, Cho defended the revision, saying that the changes would result in a larger tax increase for high-income groups and that they would address the imbalance in the tax refund system.

While not as dramatic as the DP, the ruling Saenuri Party’s leaders also expressed some concern for the increased burden on the middle class.

“If the burden on the salaried workers in the mid-income bracket increases too much, it must be addressed,” Saenuri Party floor leader Rep. Choi Kyung-hwan said Friday. However, Choi appraised the proposed revision as positive in general, saying that switching from a tax exemption system to a tax credit system would make the tax system fairer. 

Kim Gi-hyeon (left), Saenuri party policy committee chief, shows a poster for the party’s campaign to collect the public’s questions to the government during an upcoming parliamentary inspection. At his side is party floor leader Choi Kyung-hwan. (Park Hyun-koo/The Korea Herald) Kim Gi-hyeon (left), Saenuri party policy committee chief, shows a poster for the party’s campaign to collect the public’s questions to the government during an upcoming parliamentary inspection. At his side is party floor leader Choi Kyung-hwan. (Park Hyun-koo/The Korea Herald)


Although the Saenuri Party and the DP share a small overlap in their views on the tax code revision, the two continued to exchange bitter criticism over the parliamentary probe on the NIS and the proposed meeting with the president.

While the two parties were unable to bring the probe back on track, the DP chairman last week called on the president to meet with him to resolve related issues. When the suggestion was ignored, Saenuri Chairman Rep. Hwang Woo-yea stepped in and suggested a three-way meeting including himself. The presidential office then countered by proposing a meeting including the two parties’ floor leaders.

The president’s offer, however, was rejected by the DP that claimed that the president’s suggestion showed that she did not fully understand the situation.

“The fact that the DP is planning candle (vigils) and stepping up its fight, despite the probe being on track, will make it self-evident that the DP has ulterior motives,” Choi said

“The DP, which is throwing away the cause of people’s livelihood, wrapped up in the memories of candlelight from five years ago, is pitiful.”

On Saturday the DP is planning to participate in a large candlelight protest calling for a stringent probe into the NIS and its alleged election interference. 


By Choi He-suk
(cheesuk@heraldcorp.com)