By Kang Seung-woo
President Park Geun-hye refused to back down Monday over plans to increase taxes to finance an expansion of the welfare system.
“What is most important is to seek ways to offer welfare to the people, while minimizing the burden laid on them,” Park said during a regular meeting with her senior secretaries at Cheong Wa Dae, describing a tax hike as equivalent to getting an IV injection.
“We should seriously think about whether we have done all we can before placing an additional burden on the public.”
Park urged the National Assembly and the government to do their utmost to revive the economy, which she believes will create more jobs and increase tax revenue, saying that relying on tax increases is betraying the people.
This comes just one week after Saenuri Party Chairman Kim Moo-sung warned against Park’s welfare policies, saying an expansion in welfare must be accompanied by tax hikes.
Rep. Yoo Seong-min, the ruling party’s new floor leader, also said last week that the Park administration needs to change its policy of “welfare without tax increases“ and reconsider corporate and income taxes from scratch.
The nation’s corporate tax rate on taxable income exceeding 20 billion won ($18.2 million) was lowered from 25 percent to 22 percent during the former Lee Myung-bak administration.