The government is facing intense backlash after announcing a tax reform plan that eliminates income deductions for public transport expenses and reduces additional deduction limits. On August 3, the Ministry of Finance and Economy revealed the '2026 Tax Reform Plan,' which will take effect from the tax period starting January 1, 2027.
According to the proposed changes, the current 40% deduction rate for public transport expenses will be completely removed from the income deduction category. As a result, the additional deduction limit for workers earning less than 70 million won will decrease from 3 million won to 2 million won for traditional markets, public transport, and cultural expenses. For those earning over 70 million won, the additional deduction limit will be halved from 2 million won to 1 million won, with public transport expenses excluded.
The government explained that the shift from tax deductions to direct financial support (such as subsidies) aims to enhance the efficiency of tax expenditures. However, online critics argue that the move disproportionately affects working-class individuals who primarily rely on public transport, suggesting that the government is trying to fill budget gaps at their expense.
"It was nice to receive, wasn't it?"... Outrage Across Political Lines
Following the announcement, thousands of comments expressing anger flooded major online communities.
In a female community with over 770 comments, users connected the government's cash support payments to the tax reform, voicing self-deprecating criticism. Comments included, "They threw money into the air and now they're taking it back through taxes," and "This is the price we pay for receiving 100,000 won in subsidies." Many expressed feelings of betrayal towards the current administration, comparing it unfavorably to the previous government.
In a male community with over 1,110 comments, users criticized the policy contradictions and the government's approach to tax revenue. Comments included, "They are squeezing every penny from tax revenue," and "They give out subsidies for high fuel prices but eliminate public transport deductions—what are we supposed to do?" Some sarcastically remarked, "They distribute 150,000 won in subsidies while taking so much back, making it impossible for everyone to live well."
Criticism of cash-based welfare policies also emerged, with comments like, "It was nice to receive, but did they not realize that this is debt that they and their children will have to repay?" and "The poor will only become poorer; it seems they want a welfare state."
While the government claims the transition to direct financial support will improve efficiency, the increased tax burden on daily commuters and working-class individuals suggests that tax resistance and accountability for the administration will persist for the foreseeable future.
* This article has been translated by AI.
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