While taxes are at the center of the welfare
debate… For five straight years,… the tax burden
on Korean households has risen at a faster pace than household income.
But corporate taxes have been on a downward trend.
Hwang Ji-hye has the details on the growing burden for ordinary families.
The tax burden for Korean households outpaced income gains by nearly double… in the first
three quarters last year. Data from Statistics Korea shows the average
monthly income of a household with more than two members stood at around 4-thousand U.S.
dollars,… up more than 3-and-a-half percent from a year ago.
But… households′ average monthly spending on taxes… rose almost six percent to around
140 dollars. The trend of households′ tax burden increasing
at a faster pace than their income… has been an ongoing issue since 2010.
And because… tax expenditures exclude indirect taxes like… value-added dues that households
pay as they spend money to buy products,… the actual tax burden on them is heavier.
It′s no surprise then… that national income tax revenues,… collected mostly from ordinary
citizens,… are on the rise. Korea′s national income tax revenue has
risen for the past two years since 2012,… while corporate tax revenues were on a downward
trend during the period. Although the government points to the sluggish
economy at home and abroad for the low corporate tax revenues,… experts say… it should
seek ways to create tax equity.
Hwang Ji-hye, Arirang News.