▲ Democratic Party’s Representative Lim Kwang-hyun
Democratic Party’s Representative Lim Kwang-hyun criticized the Ministry of Economy and Finance’s announcement today (12th) on the introduction of the inheritance acquisition tax as a “tax cut for the rich.”
During a press conference, Representative Lim stated, “If the inheritance tax is reformed based on the proposals from the People Power Party and the Ministry of Economy and Finance, the benefits will go to the wealthy.”
He argued, “A simulation based on the Ministry’s proposal, considering one spouse and one child, shows that there are no benefits from the introduction of the inheritance acquisition tax for an ordinary person with inherited property worth less than 5 billion won. However, high-asset individuals above this threshold will see their inheritance tax reduced and receive benefits.”
Representative Lim criticized, “The government did not even mention the revenue reduction from the introduction of the inheritance acquisition tax,” questioning if they are “hiding yet another tax cut for the rich.”
He continued, “Currently, there are middle-class people who have to sell their homes due to inheritance tax,” urging the government to cooperate in promptly processing the Democratic Party’s proposal for a spouse deduction of 1 billion won and a standard deduction adjustment of 800 million won to ease the tax burden on the middle class.”
He further added, “The transition to the inheritance acquisition tax can be discussed at a later time without haste.”
Additionally, Representative Lim noted, “Recently, Korea is experiencing a prolonged domestic market slump, with a situation more severe than during the IMF financial crisis.” He criticized that, nevertheless, “the Ministry of Economy and Finance’s livelihood economic policy, presented just a month after the extension of the fuel tax cut, is merely the transition to the inheritance acquisition tax for a tax cut for the rich.”
He demanded, “The Ministry of Economy and Finance, which holds the budget formulation rights as stipulated by the Constitution, should first propose a supplementary budget. Present realistic proposals starting with a supplementary budget.”
(Photo=Yonhap News)