Gold Rush or Tax Trap: Democrats Divided on Investment Tax Showdown
Heated Debate Within the Democratic Party of Korea Over Financial Investment Income Tax
A debate is heating up within the Democratic Party of Korea regarding the financial investment income tax (FIT) and its implementation. The Democratic Party announced that it will hold a public debate on the FIT on the 24th, but even before it starts, there has been a heated debate within the party.
Representative Lee So-young’s ‘Gold Investment Tax Deferral Theory’
Representative Lee So-young, a leading proponent of the ‘gold investment tax deferral theory’, appeared on the YouTube channel ‘Sampro TV’ on the 10th and likened the gold investment tax to a ‘road toll tax’, saying, “Our country’s stock market is currently in shambles, so now is not the right time (to introduce the gold investment tax).” She argued, “Roads should be paved with asphalt and toll taxes should be collected.”
Jin Sung-jun’s Rebuttal
In response, Jin Sung-jun, the floor leader of the Policy Committee who sticks to the “implementation of a gold investment tax,” rebutted on his Facebook page, saying, “Even if it’s an unpaved road, if you made a profit, you should pay taxes,” and ”Even if it’s inconvenient to travel, if you saw conveniences like shortened travel times by using that road, I think it’s right to pay taxes. This is because income tax shouldn’t be imposed based on whether you earned your money easily or with difficulty.”
Lawmaker’s Counterargument
The lawmaker posted on his Facebook page, refuting the idea, saying, “The reason I said we shouldn’t collect tolls on unpaved roads is not because the roads are bumpy and uncomfortable, but because there is an alternative road like the Autobahn right next to it.”
The lawmaker said, “Mobile stock investment has become widespread, so now you can invest in overseas stocks with your cell phone. Overseas markets are much more transparent and have higher returns than our market, like ‘asphalt roads.'” He added, “In this situation, if our roads say, ‘We’re going to collect tolls without even paving,’ cars will definitely divert to the adjacent roads, and our roads will become deserted, unpopular roads with reduced traffic.”
Increasing Support for Postponing the Gold Investment Tax
Led by this lawmaker, the number of lawmakers within the Democratic Party who are saying that the implementation of the gold investment tax should be postponed is increasing.
At the Supreme Council meeting on the 9th, Supreme Council member Lee In-ju asserted, “It is not too late to implement (the gold investment tax) after the stock market has been advanced,” and “If the gold investment tax is implemented forcibly, the psychological burden of the 14 million citizens who participate in the stock market, such as concerns about investment losses, will increase.” Supreme Council member Lee’s remarks attracted attention because they were the first to be made by the leadership in favor of a deferral.
In addition, when Rep. Jeon Yong-gi and Rep. Lee Yeon-hee expressed their stance on deferral on SNS, Rep. Lee So-young shared the post and responded. On the 10th, Rep. Jeong Il-young, a member of the National Assembly Planning and Finance Committee that deliberates the gold investment tax, expressed his position that the introduction of the gold investment tax should be postponed. Rep. Jeong said, “We need to advance our stock market before introducing the gold investment tax,” and “It is not too late to discuss the introduction of the gold investment tax after making our stock market a more attractive market.”
Upcoming Public Debate
Ahead of the public debate on the 24th, the Democratic Party is recruiting debaters. The Democratic Party plans to share various opinions on the implementation, postponement, and abolition of the gold investment tax at this debate.