The summary of the given text is as follows:
The government had initially predicted a national tax of 400.5 trillion won for the current year, but the revised forecast is 341.4 trillion won, a decrease of 14.8%. This is the highest deficit in tax revenue ever, even surpassing the deficit in 1998 following the IMF crisis. The decline is attributed to a sharp drop in corporate operating profit and a decrease in starting assets due to the worsening domestic and foreign economic conditions.
The corporate tax decreased by 25.4 trillion won and the income tax by 17.7 trillion won due to poor corporate performance and the real estate recession. The government expected the national livelihood deficit compared to GDP this year to be 2.6%, but it is expected to exceed 3%, the fiscal standard emphasized by the current government.
The budget is as budgeted and the actual household affairs of the country are separate, which hinders market predictability. The National Assembly budget is set for December 2nd. The government will not disclose the shape of the country's tax contraction or leak the timing of the estimate.
Of the 59.1 trillion won in insufficient tax revenue, 60% or 36 trillion won, is covered by the central government. The plan is to reduce spending this year and fill in the remaining 12 trillion won with money left over from last year. The rest is drawn from various so-called Youngkke funds, and the distorted Environmental Fund has proposed a plan to first repay 20 trillion won of the money borrowed from the Public Fund Management Fund, and then the government will borrow this money again.
However, some point out that the so-called foreign exchange breakwater, an emergency fund for protecting the exchange rate, may have been torn down. Although it is a simple situation, the dollar may weaken, and using it now could leave a bad precedent.
As of now, there are 19,959,000 wage earners in Korea, and their average annual salary is 40.24 million won. In 5 years, the number of workers has increased to 2.22 million, and the average annual salary has increased by 6.64 million won.
The government has increased the number of people receiving salaries and increased wages, so taxes are also paid. Various tax reduction benefits, such as transfer tax reduction and corporate tax benefits for multiple homeowners, are bypassing earned income earners. The rate of tax payment seems to be quite high.
This year, the earned income tax was slightly adjusted while leaving the tax rate the same. Because of this, most wage earners are subject to the same tax rate as last year. The tax rate is uniform. This is in contrast to the corporate tax, which was reduced by 1 percentage point, or the home ownership tax, which returned to the level of three years ago. This means that the taxes paid by companies and property owners are reduced, but the taxes paid by wage earners remain the same.
The government this year is expected to earn KRW 60.6 trillion in earned income tax, up 4.6% from last year. If this prediction becomes reality, earned income tax revenue, which reached the KRW 50 trillion range last year, will jump to the KRW 60 trillion range in just one year.
In 2008, the corporate tax rate of large corporations was lowered. The share of corporate tax in overall national taxes decreased. It was 23% in 2008, but last year it was 20%. On the other hand, the share of earned income tax was 9% in 2008, but increased to 13% last year. This means that salaried employees have filled the void left by large corporations paying less taxes.
Now, 14 years later, the government is pushing for a corporate tax cut again. This is a bill to lower the top corporate tax rate of 25%, which was restored during the Moon Jae-in administration, back to 22%. The logic that the economy will grow only when it is cut is the same as then.
1. The government predicted that this year's national tax would be 400.5 trillion won, but the re-released forecast is 341.4 trillion won, which is about 14.8% lower than the previous calculation of 59.1 trillion won.
2. The tax revenue deficit is at an all-time high, even greater than in 1998 right after the IMF crisis.
3. The deficit is due to a sharp decline in corporate operating profit and a decline in starting assets due to the rapid deterioration of domestic and foreign economic conditions.
4. Corporate tax decreased by 25.4 trillion won due to poor corporate performance, including sluggish exports of semiconductors, and income tax due to the real estate recession.
5. The government expected that the national livelihood deficit compared to GDP this year would be 2.6%, but it is certain that it will well exceed 3% as revenue decreases more than expenditures.
6. The budget is as budgeted and the actual household affairs of the country are separate, hindering market predictability.
7. The National Assembly budget is set for December 2nd.
8. The government will not disclose the shape of the country's tax contraction or leak the timing of the estimate.
9. Of the 59.1 trillion won in insufficient tax revenue, 60%, or 36 trillion won, is covered by the central government.
10. The plan is to reduce spending this year and fill in the remaining 12 trillion won with money left over from last year.
11. The rest is drawn from various so-called Youngkke funds, and the distorted Environmental Fund has proposed a plan to first repay 20 trillion won of the money borrowed from the Public Fund Management Fund, and then the government will borrow this money again.
12. As of now, there are 19,959,000 wage earners in Korea, and their average annual salary is 40.24 million won.
13. In 5 years, the number of workers has increased to 2.22 million, and the average annual salary has increased by 6.64 million won.
14. The government has increased the number of people receiving salaries and increased wages, so taxes are also paid.
15. Various tax reduction benefits, such as transfer tax reduction and corporate tax benefits for multiple homeowners, are bypassing earned income earners.
16. This year, the earned income tax was slightly adjusted while leaving the tax rate the same.
17. The tax rate is uniform. This is in contrast to the corporate tax, which was reduced by 1 percentage point, or the home ownership tax, which returned to the level of three years ago.
18. The government this year expects that earned income tax will reach KRW 60.6 trillion, up 4.6% from last year.
19. In 2008, the corporate tax rate of large corporations was lowered. The share of corporate tax in overall national taxes decreased. It was 23% in 2008, but last year it was 20%.
20. The share of earned income tax was 9% in 2008, but increased to 13% last year. This means that salaried employees have filled the void left by large corporations paying less taxes.
21. The government is pushing for a corporate tax cut again. This is a bill to lower the top corporate tax rate of 25%, which was restored during the Moon Jae-in administration, back to 22%.
22. According to KDI's research results, a 3% point cut in the highest tax rate is 0.6% in the short term and 3.04% in the mid- to long-term.
23. 63% of all dividend income in the country goes to the top 1%.
24. KDI President Hong Jang resigned last July, criticizing the government for undermining research neutrality. The position remains vacant.
25. The European Economic Review concluded in its August issue that the average effect of corporate seminars on growth was 0.
26. Last week, the UK announced a large-scale tax cut plan that it said would promote economic