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The photo shows the area of an apartment complex in Gangnam-gu, Seoul, on the afternoon of the 19th. Yunhap news
An uproar is erupting as invoices are being sent to pay the global property tax (voluntary tax) for 2020 accrued. For taxpayers, tax increase factors such as a higher property tax rate, a rise in house prices and the realization of published prices are in a situation like a triangle wave. It is reported that the number of people subject to the tax tax has risen sharply to 700,000, an increase of nearly 200,000 over last year. The number of condominiums with a publicly announced price of 900 million won or more, subject to tax, has also increased by 40% since last year to 281,000 households.
The rush to raise taxes is just the beginning. The day is not too long for the owners of more expensive apartments to be surprised by the annual tax jumps. Next year, the tax rate will increase from 3.2% to 6% and the public announcement discount rate will rise to 90% of the market price within 5-10 years. In the future, the tax on taxation could increase from several hundred to 1,000%. There is no country that raises property taxes like this at random. The current regime argues that Korea’s property tax is lower than that of the United States, but struggles to ignore the fact that Korea’s transaction tax (transfer income tax) is among the highest in the world.
According to the tax hike, the related tax revenue this year is expected to reach 4 trillion won, surpassing last year’s record high of 3.34 trillion won. There is no doubt that the government, having fallen into welfare populism, is raising housing taxes to fill the granaries in a country with holes. If the property tax is raised to stabilize the home price, the transaction tax must be lowered to provide an escape, but the government doesn’t even pay attention to that.
It is also an incurable disease to think that it is too easy to open people’s wallets. This is not about clashing with the people, saying that only a few are subject to the tax. Also important is the extent of the suffering of those who, despite being a minority, suffer from higher property taxes. In particular, it is difficult for long-term homeowners or senior retirees to afford the leaps and losses. As property taxes rise, medical insurance increases and social benefits decrease. What does it mean to also steal the disposable income of real residents, not speculators?
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