Kim Moon-soo, a candidate for the People Power Party's presidential primary, said on the 30th, "I will reduce the tax burden that is making it difficult for the middle class," promising the introduction of a price-linked system during the calculation of comprehensive income tax and an increase in deductions for basic, senior citizens, and disabled individuals. He stated that he would lower the corporate tax rate from the current 24% to 21%.
Kim presented a tax reform policy pledge outlining these details on this day.
He noted, "The proportion of earned income tax compared to national tax exceeded 18% last year due to tax base and deduction amounts that do not reflect the inflation rate, making life increasingly difficult for K-workers," adding, "I will introduce a price-linked system for comprehensive income tax, which directly impacts the middle class, in line with global standards."
In addition, he announced plans to raise the basic deduction amount from the current 1.5 million won to 3 million won, increase the senior citizen deduction for those aged 70 and over from the current 1 million won to 2 million won, and raise the deduction amount for the disabled from the current 2 million won to 3 million won.
He also said, "To ensure the living security of retirees, I will raise the comprehensive taxation criteria for financial income from 20 million won to 30 million won, thereby reducing the tax burden on seniors who only have financial income without earned income."
Regarding performance bonuses for workers, he decided to promote tax relief. Kim said, "We will maximize the compensation effect to boost the morale of hard-working employees and contribute to wealth formation."
Additionally, he stated that he would expand the tax-exempt limit for the '20,000 won monthly childcare allowance for children under 6' in proportion to the number of children (20,000 won per child). He also announced that the individual consumption tax for passenger cars under 2,000cc and electric cars would be excluded from taxation.
He promised a complete overhaul of inheritance tax.
Kim stated, "I will completely abolish inheritance tax on spouses who built wealth together and reform the current inheritance tax method to an inheritance acquisition tax method," adding, "To maintain jobs through the continued operation of family businesses, I will reform inheritance tax to a capital gains tax method."
He also revealed plans to lower the highest inheritance tax rate (50%) to align with competing countries and eliminate the major shareholder premium (20%). He promised to also lower the corporate tax rate from the current 24% to 21%.