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PSPD    People's Solidarity for Participatory Democracy

  • About PSPD
  • 2019.09.16
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The Tax System that Aggravates Property Inequality

#NormalizingComprehensiveRealEstateHoldingTax #PropertyInequality #TaxingPropertyOwners #MonitoringNationalFinances

 

Activities for the Urging of Normalization of Comprehensive Real Estate Holding Tax 

The Republic of Korea has a serious property inequality problem. In order to resolve this situation, the nation needs to strengthen the taxation of property owners. However, the Lee Myung-bak administration nullified the enforced comprehensive real estate holding tax that was the solution to the problem of property inequality. In an effort to solve the property inequality problem, the PSPD led many activities for fairer taxation and increasing taxes, and also presented a petition to amend the tax bill, which would advocate the normalization of the comprehensive real estate holding tax, improvement of the taxation on rental incomes, improvement of inheritance taxes, and strengthening of the taxation on financial profits. As a result, in 2018, the comprehensive real estate holding taxes were raised.

 

Activities Urging for the Improvement of Public Property Listing Prices and Property Tax System

The core of the problem to property speculation in the Republic of Korea is unearned income. The best method to combat unearned income is the strengthening of the property tax system. The present property tax policies are giving irrational tax cuts to real estate owners under the “Fair Market Value Ratio” system, where the property taxes collected from the public listed prices are incredibly low compared to the inflated real transaction prices. In order to publicize the issues surrounding the public listed price, the PSPD published an issue report that analyzed the public listed price issues and led many activities to urge for the strengthening of property taxes through media planning.

 

Improving the Finance System and Activities to Monitor Finances

In 2018, the PSPD continued the monitoring of the use of national finances. The PSPD held a national budget debate with civilians and other civil organizations and worked with civilians in analyzing national budget data. Additionally, the PSPD endlessly raised awareness to solve the large-scale loss issues surrounding the “Lee Myung-Bak Resource Diplomacy Plan” that utilized taxes worth trillions of Korean Won, and led activities to voice the accusations of those involved and to uncover and ascertain the truth. The PSPD participated in the National Fiscal Strategy meeting and pressed for the better management of national finances and monitored the National Fiscal Policies as well.

 

Main Activities

•02/20 [Symposium] Legislation Symposium on the Creation of a Class Action Lawsuit for a Democratized National Finance System

•03/06 [Issue Report] Presentation of the Petition for a 2018 Tax Bill Amendment

•03/07 [Panel Discussion] Plan to Strengthen the Comprehensive Real Estate Holding Tax to Mitigate Property Inequality

•03/30 [Lawsuit] Class Action Lawsuit for the Claim of Damages and Investigation of Responsibility in the “Lee Myung-bak Resource Diplomacy Plan”

•06/18 [Accusation] Accusing Former President Lee Myung-Bak of Poor Management of the Resource Diplomacy Plan!

•07/06 [Issue Report] Already Destroyed Transportation, Energy, and Environment Tax: The Answer is Through Individualized Consumption Taxes

•09/11 [Issue Report] The Public Listed Price of Detached Houses is Not Even Half of the Real Transaction Prices

•10/25 [Panel Discussion] 6th Debate on National Finances: Changing the 2019 National Finances Through the Power of the People

 
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