Senior Lawmaker Sangmin Lee of the Democratic Party: "Profit-Sharing System Lacks Effectiveness... Wealth Tax Limited to 'Big Rich' Is Appropriate"

"Agree with the Purpose but 'Voluntary Participation' Is Ineffective... Controversy Over Fairness Disputes"
"Preparing Legislation for Wealth Tax Rather Than Workarounds"

[Image source=Yonhap News]

[Asia Economy Reporter Wondara] Lee Sang-min, a five-term senior member of the Democratic Party of Korea, criticized the profit-sharing system proposed by Democratic Party leader Lee Nak-yeon as ineffective. Lee stated that the introduction of a wealth tax is more appropriate and announced that he is preparing to propose a bill.

On the morning of the 13th, Lee wrote on Facebook, "Leader Lee Nak-yeon, I agree with the intention behind the 'profit-sharing system.' However, 'voluntary participation' does not guarantee effectiveness."

He added, "There is a high possibility of controversy over the fairness of calculating profits or losses," and said, "I think a 'wealth tax' or 'social solidarity tax' method is better."

Regarding specific methods, he explained, "If there are concerns about tax resistance or public rejection, the period can be limited to 3 to 5 years, the target minimized as much as possible to only the very wealthy, and the use restricted to resources for alleviating polarization such as aid for the poor, support for small business owners, and scholarships (similar to earmarked taxes)."

Lee said, "Similar legislation has already been enacted in countries like Argentina, and even in the United States, the Biden administration is considering a wealth tax, so it is by no means unfamiliar. It is more appropriate to take a direct approach with a wealth tax or social solidarity tax rather than a roundabout method of voluntary participation. I am already preparing a bill to promote this legislation."

Before Leader Lee proposed the profit-sharing system, Lee Sang-min had also advocated for the introduction of a wealth tax last month. On Facebook on the 6th of last month, he said, "In the national crisis situation where support for socially vulnerable groups has become more difficult due to the COVID-19 pandemic and national debt is rapidly increasing, I propose actively promoting the introduction of a wealth tax."

This content was produced with the assistance of AI translation services.