Opposition Criticizes Government's Tax Reform Plan as a Burden on Renters

The People Power Party strongly condemned the government's tax reform plan, which includes increases in property ownership and transaction taxes, calling it an "unprecedented deterioration."

According to a report by Yonhap News on August 3, members of the National Assembly's Finance Committee from the People Power Party held an emergency press conference, stating, "The government, which should support the public suffering from high prices, high exchange rates, and high interest rates, has only increased the burden." They collectively labeled the proposal as "the worst tax reform plan in history."

The committee members particularly criticized the government's intention to collect an additional 3.4 trillion won in taxes despite achieving record surplus revenues due to the semiconductor boom, asserting, "In short, it’s a 'shut up and pay your taxes' approach."

The most contentious issue raised by the committee was the increase in property transaction and ownership taxes. They argued that the simultaneous rise in these taxes would restrict housing supply. They warned that the increased tax burden on multiple homeowners and landlords would ultimately be passed on to tenants, leading to soaring rents and housing instability for ordinary citizens.

Additionally, they criticized the change in the deduction criteria for comprehensive real estate tax and capital gains tax from 'ownership' to 'residency,' stating that citizens would have to meet stringent requirements to prove their residency. They also pointed out that the reduction of capital gains tax benefits for seniors and long-term homeowners sounded like a coercive message: "If you can't afford to pay taxes, sell your house and leave." They added that the tightening of regulations on rental businesses would further hinder housing supply for young people and newlyweds.

Furthermore, they noted, "The government has significantly eliminated or redirected legally guaranteed tax benefits for the public, making it difficult for households and businesses to plan long-term due to uncertainty about when and how much support they will receive."

The committee also expressed skepticism about the effectiveness of the government's proposed corporate support measures, criticizing the increased requirements for business inheritance tax exemptions from 10 years to 30 years, questioning whether this was an attempt to undermine the system itself.

According to materials released by the People Power Party, the government's tax reform will modify 115 out of 241 tax expenditure items and convert 17 into financial support.

The committee emphasized, "This reform eliminates the rights of the people while expanding government handouts," asserting, "The People Power Party will fight to protect the rights and properties of the people against tax absolutism."