SEOUL, July 24 (Xinhua) -- The new South Korean government under President Moon Jae-in will push to raise taxes on super high-income earners and large conglomerates amid overwhelming public support.
The government and the ruling Democratic Party held a meeting Monday, agreeing to change its economic growth strategy from the high and exporters-driven growth to the stable and income-based growth.
The National Assembly passed about 10 billion U.S. dollars of supplementary budget plan Saturday to help create decent jobs and achieve the goal of income-based growth.
As part of efforts to finance the expanded welfare and social security nets, the ruling party planned to push for the higher income tax on those who earn 500 million won (about 450,000 U.S. dollars) per year and the higher corporate tax on companies making at least 200 billion won (about 180 million U.S. dollars) of operating profit a year.
According to a Realmeter poll released Monday, 85.6 percent of respondents supported the increased taxes. Only 10 percent opposed the tax hikes.
It was based on a survey of 507 adults conducted last Friday. It had 4.4 percentage points in margin of error with a 95 percent confidence level.
Three major opposition parties, including the main opposition Liberty Korea Party, the minor conservative Righteous Party and the centrist People's Party, objected to the increased income and corporate taxes.
The parties claimed that higher corporate taxes on large conglomerates may weaken corporate investment and job creation.
Despite the corporate tax cut under the five-year presidency of Lee Myung-bak, South Korea's corporate investment and job creation remained lackluster, expanding the cash holdings of large conglomerates thanks to lower corporate tax.
Calls mounted for higher income and corporate taxes on super high-income earners and large conglomerates to finance the growing demand for social security nets and social welfare amid the rapidly aging population and the widening income gap.
The minor progressive Justice Party said the government-proposed tax hikes would only increase tax revenue by 3-4 trillion won, which falls far short of 178 trillion won necessary to fund the President Moon-initiated welfare policy.
The progressive party demanded the government's "bolder" hike in income and corporate taxes for expanded social security nets and preparations for the super-aged society.
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