Opposition party campaign strategists oppose taxing the rich

Campaign strategists for the main opposition Democratic United Party (DUP) on Friday expressed reservations about a plan put forward by a senior Saenuri Party official to tax the rich, stressing that it could have serious repercussions.

DUP presidential hopeful Moon Jae-in's spokesman Woo Sang-ho said election camp officials have reviewed the feasibility of taxing the rich and found it to be inappropriate.

"It is the hope of our party that Saenuri officials give more thought before announcing new plans that could confuse the public," the lawmaker said.

The remarks come after Kim Moo-sung, the chief of election strategy and control for Saenuri's presidential contender Park Geun-hye, said Thursday there is a need to consider creating a new type of tax for the rich.

He said the extra revenue is needed to pay for a rise in welfare outlays that cannot be covered by cutting back government spending, and for reducing various tax breaks. Kim said taxes for the rich could also help the government maintain its fiscal health.

Saenuri officials said Kim's tax scheme has been checked although it has yet to be approved by an in-house committee in charge of announcing formal campaign pledges that will be made by presidential hopeful Park Geun-hye.

Related to Kim's plan, Lee Joung-woo, head of economic policy coordination for Moon, said earlier in the day that taxing the rich may attract public interest yet on the whole was not a good idea.

"Taxing the rich means burdening people who have worked hard for their money," the economist said.

Lee did, however, concede that streamlining state spending and cutting back on tax breaks will not cover all expenses so all presidential candidates need to admit to the public that some tax hikes are inevitable.

The remarks come after the finance ministry said earlier in the year that no amount of spending cuts will permit all the welfare policy initiatives political parties announced they would carry out. It said if the programs are enacted, it will invariably lead to more taxes.

For 2013, Seoul has earmarked 100 trillion won (US$90 billion) for welfare related spending, which is the largest amount allotted for welfare in the country's history. (Yonhap)