By Jung Sung-ki
Senior lawmakers of the main opposition Democratic Party (DP) are in disagreement over the introduction of a wealth tax to help finance the party’s “universal” welfare program, which the ruling camp has denounced as a populist plan that will hurt the government’s fiscal soundness.
Political observers view the internal feud over the party’s flagship policy as a preliminary struggle between mainstream and fringe groups ahead of next year’s presidential race.
Chung Dong-young, a member of the DP Supreme Council, reiterated Monday the need for introducing a wealth tax, calling for a vote by party members on the issue. Chung is seen as a leader of the fringe faction.
“Talking about taxation at the same time you talk about welfare programs may be inconvenient, but we should be brave and face the truth,” Chung, a 2007 presidential candidate on the DP’s ticket, said in a council meeting.
“The main policies of the party should be decided by members’ votes,” he added, citing an intra-party survey on the introduction of the tax, which showed that 83.7 percent of respondents it.
The DP has proposed a set of “free” welfare schemes, including school lunches for elementary and middle school students, health care for the entire population and childcare, and half-priced tuition for college students.
To finance these programs, Chung has proposed introducing a wealth tax that targets the nation’s richest whose net income annual exceeds 3 billion won. This group accounts for 0.58 percent of the population.
Chung’s proposal is also aimed at levying tax on big corporations with assets surpassing 1 trillion won. The annual revenue from this tax is estimated at some 13 trillion won. The former minister of unification has also called for adopting a welfare tax that would be imposed on households with the top 10 percent income to collect another 10 trillion won a year.
DP Chairman Sohn Hak-kyu has rejected Chung’s idea.
“A national consensus is the top priority in any welfare program,” said Sohn. “By overhauling the existing taxation and health insurance systems, we should be able to implement the new welfare programs without increasing tax rates.”
Chung Sye-kyun, a former DP chairman, is also opposed to Chung Dong-young’s idea, saying it was not an opportune time to discuss a wealth tax. Other lawmakers of the party’s mainstream group are worried that such a move to increase tax on the wealthy could provoke a backlash from the rich and conservatives in the country ahead of the parliamentary and presidential elections next year.
Senior lawmakers of the main opposition Democratic Party (DP) are in disagreement over the introduction of a wealth tax to help finance the party’s “universal” welfare program, which the ruling camp has denounced as a populist plan that will hurt the government’s fiscal soundness.
Political observers view the internal feud over the party’s flagship policy as a preliminary struggle between mainstream and fringe groups ahead of next year’s presidential race.
Chung Dong-young, a member of the DP Supreme Council, reiterated Monday the need for introducing a wealth tax, calling for a vote by party members on the issue. Chung is seen as a leader of the fringe faction.
“Talking about taxation at the same time you talk about welfare programs may be inconvenient, but we should be brave and face the truth,” Chung, a 2007 presidential candidate on the DP’s ticket, said in a council meeting.
“The main policies of the party should be decided by members’ votes,” he added, citing an intra-party survey on the introduction of the tax, which showed that 83.7 percent of respondents it.
The DP has proposed a set of “free” welfare schemes, including school lunches for elementary and middle school students, health care for the entire population and childcare, and half-priced tuition for college students.
To finance these programs, Chung has proposed introducing a wealth tax that targets the nation’s richest whose net income annual exceeds 3 billion won. This group accounts for 0.58 percent of the population.
Chung’s proposal is also aimed at levying tax on big corporations with assets surpassing 1 trillion won. The annual revenue from this tax is estimated at some 13 trillion won. The former minister of unification has also called for adopting a welfare tax that would be imposed on households with the top 10 percent income to collect another 10 trillion won a year.
DP Chairman Sohn Hak-kyu has rejected Chung’s idea.
“A national consensus is the top priority in any welfare program,” said Sohn. “By overhauling the existing taxation and health insurance systems, we should be able to implement the new welfare programs without increasing tax rates.”
Chung Sye-kyun, a former DP chairman, is also opposed to Chung Dong-young’s idea, saying it was not an opportune time to discuss a wealth tax. Other lawmakers of the party’s mainstream group are worried that such a move to increase tax on the wealthy could provoke a backlash from the rich and conservatives in the country ahead of the parliamentary and presidential elections next year.
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