The political backlash against the government proposal for tax rises escalated over the weekend, forcing the ruling Saenuri Party to explore ways to moderate it and defuse taxpayers’ anxiety.

The main opposition Democratic Party said it would launch a signature-collecting campaign Monday to thwart the proposal, reiterating that it was a “tax bomb” on middle-class workers.

“We would never accept the proposal in which the middle class and average people would have to pay more taxes,” DP Chairman Kim Han-gil said in a meeting with reporters that marked the 100th day of his inauguration.

“The right way for Korea is having the wealth ― monopolized by chaebol (family-run conglomerates) and the ultra-rich ― be used to help better the entire society. But the plan seems to be explicitly pushing ordinary people to the brink of a cliff.”

Apparently to bankroll President Park Geun-hye’s election pledges for better welfare, the government proposed the revision last Thursday, which would switch the current tax exemption system to a tax credit system, ostensibly to make the taxation fairer.

Although the proposed changes would lead to a greater tax hike for high earners, the middle-class is to shoulder more tax burden. Those with a yearly salary of between 34.5 million won ($31,039) and 70 million won are to pay 160,000 won more in taxes each year from 2014 under the proposal.

The proposed revision is expected to boost state coffers with additional revenues of more than 8 trillion won between 2014 and 2017. Experts criticized the abrupt announcement of the proposal, stressing that the government should have tried to build public consensus first.

They also pointed out that the proposal is a reversal of Park’s campaign argument that she would gain the wherewithal through cuts in government spending and other means rather than tax increases.

Facing growing public anxiety and political criticism, the ruling party sought to fix the proposal. Possible options include reducing the number of taxpayers affected by the revision or tax rates; and expanding tax deductions for child care expenses.

The proposal for taxation changes came amid a political deadlock between the ruling bloc and the DP over a parliamentary probe into the National Intelligence Service’s alleged election interference.

The DP was quick to use the criticism about the tax code revision to swing public opinion in its favor. Voter sentiment is increasingly crucial for both ruling and opposition camps, as by-elections and polls to pick local administrative chiefs are scheduled for October and next June, respectively.

Joining a massive candlelight vigil in Seoul Plaza Saturday, the DP highlighted its criticism of the tax hikes, while calling for a stricter probe into the NIS, a thorough overhaul of the spy agency and a presidential apology for the NIS “having marred” democracy.

By police estimates, some 16,000 people including opposition lawmakers and left-leaning civic groups participated in the vigil.

“A silent President Park needs to apologize (over the NIS scandal). We, the DP, will be at the vanguard of the efforts to restore democracy and prevent the ‘tax bomb’ on average people,” said DP leader Kim.

The Saenuri Party upbraided the DP for once again going out onto the street for a candlelight vigil and neglecting legislative activities to enhance people’s livelihood, while carefully watching the public sentiment over the tax code revision.

“The DP with its entire staff is pouring its energy into the street struggles rather than into people’s livelihoods. We urge you to stop the out-of-the-parliament struggle ― the origin of old-fashioned politics ― and return to the legislature as soon as possible.” Yoon Sang-hyun, vice Saenuri floor leader, told reporters.

Regarding the proposed tax code revision, Yoon said, “We are well aware of the concerns and will go through due procedures to dispel them and there will be readjustments.”

By Song Sang-ho (sshluck@heraldcorp.com)