The ruling party, which achieved the ‘lower comprehensive real estate tax for multi-homers’, the opposition, which achieved the ‘regional gift certificate’

Progress in senior public positions
Increase in the budget to stabilize rice prices

W “There are many complaints from the minority ruling party”
Hey, “Enforcement decree budget barely dropped”

On the 22nd, the opposition and opposition parties made concessions one step at a time based on the arbitration proposal proposed by National Assembly Speaker Kim Jin-pyo, and agreed on next year’s budget bill. People’s power got a reduction in corporate tax and a comprehensive real estate tax for multi-homesteaders, which are matters of interest to President Seok-yeol Yoon, and the Democratic Party of Korea got the budget for local love gift certificates , which CEO Lee Jae-myung showed interest in. The budget for the Ministry of Public Administration and Security’s Police Office and the Ministry of Justice’s Personnel Information Management Team, which are involved, will be cut by 50%.

The opposition parties and the opposition parties agreed to pass a supplementary bill to the budget which cuts the corporate tax base, which is the most controversial, by 1 percentage point for each department. Based on the arbitration proposal proposed by Chairman Kim Jin-pyo to reduce the top corporate tax rate by 1 percentage point from the current 25% to 24%, the government took a step back. Initially, the government’s original plan was to reduce the top corporate tax rate for large corporations with annual operating profits of over 300 billion won by 3 percentage points from 25 percent. The Democratic Party protested that the government’s original measure was ‘tax cuts for senior corporations’. The Democratic Party has opposed reducing the tax rate for small and medium-sized businesses with an annual operating profit of less than 500 million won from the current 20% to 10%. In the agreement, it is evaluated that the power of the people won the practical advantage of reducing corporate tax, and the Democratic Party won the justification of ‘tax reduction for the common people’.

The police department of the Ministry of Public Administration and Security and the budget of the personnel information management team of the Ministry of Justice, which caused controversy regarding the ‘judgment of the enforcement decree’, decided to reduce operating costs by 50%. The opposition parties and the ruling agreed, “In order to resolve the Democratic Party’s concerns about the two institutions, an alternative is being prepared and reflected in the agreement when revising the Government Organization Act.” The Democratic Party had the result of putting the brakes on the budget of power organizations based on the enforcement decree. People’s power avoids controversy about illegality by organizing a formal budget, not a reserve fund, while preventing further controversy by stating that amending the Government Organization Act is an agreement between the ruling and opposition parties.

The Democratic Party kept some of CEO Lee Jae-myeong’s interest budget, including the 352.5 billion budget earned for local love gift certificates (local money). The government cut the entire budget of 700 billion won for local love gift certificates, and the Democratic Party demanded to restore the original state, but gave half of each. The budget for public job support for the elderly was increased by 95.7 billion won. The government cut the public higher jobs budget, saying, “We will lead it to private jobs,” but the Democratic Party criticized it as an “immoral budget.” The ruling and opposition parties also decided to increase the rice price stabilization budget by 40 billion won. This is the budget to support the common people that CEO Lee has emphasized.

The ruling and opposition parties also exchanged a controversial financial investment income tax (gold investment tax) and a comprehensive real estate tax (comprehensive real estate tax). First of all, it was agreed to postpone the gold investment tax for two years, as the government originally proposed. People’s Power withdrew the government’s proposal to raise the tax exemption standard for stock transfer income tax back from 1 billion won to 10 billion won, but did not accept the Democratic Party’s proposal to immediately reduce the stock transaction tax to 0.15 %.

Instead, the Democratic Party also agreed to a reduction in the comprehensive real estate tax for multi-homed people with 3 or more houses, in line with the people’s power request. For multi-household people with 3 or more houses, the progressive tax system will be maintained starting from the tax base that exceeds 1.2 billion won, but the top tax rate will be reduced by 1 percentage point from 6% to 5%.

Representative Joo evaluated, “As a minority ruling party, there were many things I wanted to do, but I have many complaints because I had to get the permission of the Democratic Party.” Park said, “The goal was to block tax cuts for the very rich, greatly expand the budget for public welfare, and cut the budget for illegal enforcement ordinances,” but said, “It was too difficult to achieve a reduction of 50% in the budget for illegal enforcement orders.”