86% support tax hike for rich

More than eight of 10 Koreans back President Moon Jae-in’s idea of increasing taxes on the rich, according to a survey released Monday.

The Realmeter poll showed 85.6 percent of respondents said they support a tax hike on the rich. Only 10 percent were against it, giving the liberal President momentum to push for tax reform.

“There will be no tax hike for the middle class and small- and medium-sized businesses. This policy will last for my five-year term,” Moon said, Friday.

He echoed the ruling Democratic Party of Korea (DPK) Chairwoman Choo Mi-ae’s call to raise taxes on the “super rich” — a 25 percent corporate tax rate for companies that have more than 200 billion won ($ 179 million) in revenue, and a 42 percent income tax rate for individuals who earn over 500 million won annually.

Currently, the corporate tax rate is 22 percent and the top income tax rate is 40 percent. According to the DPK, only 116 companies and 40,000 people will be subject to these measures, which is equivalent to 0.019 percent of businesses and 0.08 percent of citizens.

Support was overwhelming across all generations, regions and ideologies. Support was especially high among respondents in their 30s at 95 percent, and 40s at 91.1 percent.

Approval was also high among conservatives — 72.6 percent of them were in favor of it. Support in the conservative strongholds of Daegu and North Gyeongsang Province stood at 88.6 percent.

Traditionally, tax hikes have been divisive issues along with enormous resistance from taxpayers.

This time, the classic confrontation hasn’t emerged. “Expectations are high for the new administration to rebuild the nation’s system that was ruined by the Park Geun-hye government,” political commentator Choi Young-il said.

“In addition, Moon’s clear explanation that he will impose taxes only on the richest has relieved people. In line with the global trend calling for larger responsibility from the wealthy, Koreans also wish to resolve the polarization by tax reform,” he added.

Even if the conservative Liberty Korea Party is protesting fiercely against it, Choi said the National Assembly will pass the tax revision bill backed by the public.