The Democratic Party of Korea is pushing for a plan to defer the payment of excess tax revenue expected this year to next year in order to finance the national disaster relief fund. This is an arduous measure to keep the promise of presidential candidate Lee Jae-myung to provide additional disaster relief funds. Among the taxes to be collected in November and December, the payment of business income tax, liquor tax, and fuel tax will be delayed by six months. It is said that approximately 4 to 5 trillion won of financial resources will be raised through the deferral of tax payment. In emergency situations such as natural disasters, tax exemptions or deferment of payment are of course required. However, adjusting the time lag of tax payments to distribute money to all citizens is a trick. The criticism of filling the left pocket by robbing the people’s right pocket is not wrong.
According to the National Finance Act, any excess tax revenue should be used first for debt repayment and local subsidy support. If excess tax revenue is delayed until next year as planned by the Democratic Party, it will be incorporated into next year’s main budget and there will be no obligation to contribute to local subsidies or public funds repayment funds. The problem is that the tax payment deferral alone cannot provide the 300,000 to 500,000 won disaster relief money suggested by Lee. Park Wan-joo, chairman of the Democratic Party’s policy committee, said, “With additional tax revenue of 10 to 15 trillion won, the amount available to all citizens is 200,000 to 250,000 won.” Therefore, there are also arguments for the formation of an additional supplementary budget and the issuance of government bonds. The national finances are populism that doesn’t even care.
The Democratic Party said it would consult with the government and opposition parties on the size and procedure of the disaster aid payment. Prime Minister Kim Bu-gyeom objected, saying, “Isn’t it a situation where money comes out just looking in your pocket?” Hong Nam-ki, Deputy Prime Minister of Economy, said, “It is unlikely that there will be an additional supplementary budget this year and it will be difficult in various ways.” Lee and the ruling party are pushing ahead regardless of the government’s position. It has been renamed ‘disaster relief fund’ rather than disaster subsidy, and the goal is to pay it in January next year. The plan is to give the public money to buy quarantine products as a pretext ahead of next year’s presidential election. It’s actually a ticketing act. If you use an irrational number to support the ‘Lee Jae-myung-pyo budget’, you will inevitably fall behind.
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