[e대한경제=이종무 기자] The business community is demanding that the income tax tax standard be improved to boost economic vitality. It is pointed out that the collection of income tax based on a tax table that has not changed for 15 years does not properly reflect recent economic changes such as an increase in gross domestic product and increase in prices and wages.
According to the business world on the 10th, the Korea Employers Federation (KEI) previously proposed to the government on the 1st to improve the system, such as the wage and salary income tax. This is a demand for rational adjustment of the income tax table. The explanation of the KEF is that there is a gap with the changed economic situation as the earned income tax has been maintained without any adjustment to the low tax rate range (income 12 million to 88 million won) for the past 15 years.
In fact, the sub-category of the taxation standard to which most of the people apply (6% tax rate of 12 million won or less, 15% of more than 12 million won to 46 million won, 24% of more than 46 million won and less than 88 million won) has been applied without change since 2008. .
As a result, it is pointed out that the increase in wages due to inflation is actually leading to a tax increase. According to the Korea Economic Daily, the actual amount of income tax amounted to 93.1 trillion won in 2020, nearly three times higher than the 36.4 trillion won in 2008.
Accordingly, the Korea Federation of Economy and Finance argues that measures such as an upward adjustment of the income tax table should be devised. The KEF emphasized, “It is necessary to adjust the section of income tax to reflect the economic situation after 2008 and to enhance the rationality of taxation.”
However, if the income tax rate section is adjusted upward, there may be an increase in the number of tax-exempt persons and a reduction in the tax base. Korea (as of 2020) has the highest percentage of workers exempt from income tax in major countries, reaching 37.2%. In the United States, 31.5% (2019), Japan 15.1% (2020), Canada 17.6% (2017), and Australia 14.9% (2017).
In order to prevent side effects such as an increase in the number of tax-exempt people, the Federation of Korean Industries said, “The ratio of tax-exempt persons has been adjusted by reorganizing the deduction system such as adjustment of non-taxation and reduction/exemption system, and while the tax burden is not concentrated on a specific class, the It is necessary to operate in accordance with tax principles.”
At the same time, the KEF said, “The direction of the new government’s economic policy has been prepared to help improve the corporate investment environment, but more drastic measures are urgently needed to overcome the current complex economic crisis early.” ‘, we hope that the improved contents will be reflected.”
Reporter Lee Jong-moo jmlee@
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