New camp leader suggests wealth tax

By Jun Ji-hye

Another political feud is likely to emerge in the Saenuri Party after Kim Moo-sung, the newly-appointed general manager of its election camp, suggested a net wealth tax Thursday.

"Collecting more taxes from rich people has to be considered," Kim said.

"Other levies including a reunification tax and a special purpose tax on cigarettes and alcohol should be introduced."

However, Kim downplayed the remarks Friday, saying they were his personal view.

A wealth tax on high income earners goes against the party platform and its presidential candidate Park Geun-hye뭩 election pledge to freeze taxation.

The net wealth tax issue emerged a decade ago, when it was raised by Kwon Young-gil, then presidential candidate for the Democratic Labor Party in 2002. But the Grand National Party, the precursor to the Saenuri Party, attacked the idea, saying “It is just populism by left-wingers.”

Although some reform-minded party members discussed the possible introduction of such a tax last November, their bid met a setback ahead of the April 11 general elections.

Additionally Park Geun-hye, the daughter of the late President Park Chung-hee, expressed skepticism on levying more taxes on the rich when she said, “Imposing more taxes on a certain class distorts the meaning of tax policy.”

Following Kim’s remarks, opposing views came from party members. Those supporting economic democratization said, “Talking about a net wealth tax is evidence of the party’s attempts to change.” Some insiders said “Kim is not in charge of policies. It is Park that makes the final decision.”

Meanwhile, the Democratic United Party criticized Kim for his remarks.

Lee Jung-woo, serving as its chairman of the committee for economic democratization, said “I don’t understand why they are suddenly talking about a net wealth tax. I didn’t expect such comments at all because the Saenuri Party has opposed the idea of increasing taxation so far.”