People Power Party lawmaker Bae Jun-young [Bae Jun-young's office]
People Power Party lawmaker Bae Jun-young [Bae Jun-young's office]

People Power Party lawmaker Bae Jun-young on Thursday criticized the government's tax reform package, saying he calls it an "ax" because "it ultimately causes the most harm to tenants, young people and those without homes."

Bae, the opposition floor manager on the National Assembly's Finance and Economy Committee, made the remarks during an appearance on KBS Radio, saying the reform "is being called a tax normalization but in reality it is deeply harmful to the public."

He argued that such sweeping changes to people's daily lives require a clear direction and public understanding, but the government has offered only empty slogans like "tax normalization" and "fair taxation." He also said that if the president's logic were applied consistently, capital gains from buying and selling shares should be taxed as well.

Bae added that "amending 11 bills and eliminating or reducing benefits tied to 115 tax provisions for citizens is extremely dangerous," and said that while imposing heavy taxes on ultra-expensive homes and multi-property owners may give the president's supporters a sense of catharsis, it "will cause major damage to the housing sales market and the jeonse and monthly rent markets in practice."

He also warned of a balloon effect, saying that because the comprehensive real estate tax threshold for owner-occupants has risen from 1.2 billion won ($860,000) to 1.4 billion won, many buyers will flood into that price bracket. "That will send the balloon effect spreading into areas around Mapo, Yongsan and Seongdong, and prices there will rise even further," he said.

Bae said the most important issue is supply, adding that rental housing must be driven by the private sector and that the private sector needs various incentives to take on that role.

On internal party matters, he expressed regret that the People Power Party has been unable to speak for people who are "really struggling" due to a drop in approval ratings and a loss of momentum caused by internal problems. "We will do our utmost to return to what we are supposed to be," he said.


mp1256@heraldcorp.com