Corporate Tax

Lee says he would impose a carbon tax on firms to supply residents with a primary revenue: The DONG-A ILBO

Minjoo Party of Korea presidential candidate Lee Jae-myung has expressed his determination to introduce the carbon tax system, calling it the only path to a low-carbon society. He suggested collecting a carbon tax from companies to finance the basic income.

Speaking about the carbon tax in an interview with the Dong-A Ilbo on Thursday, Lee stated that he would like to help reduce carbon emissions by guiding companies to move forward with industrial relocation and adapt to a new system . “In the meantime, I plan to give equal benefits to all South Korean citizens to reduce disgusting reactions and social costs,” he said, adding that the carbon tax is primarily paid by businesses.

With a new CO2 tax system he wants to ensure that a CO2 tax revenue of 50,000 to 80,000 won per ton results in a budget of 30 trillion to 64 trillion won, which can justify his idea of ​​introducing a basic income. However, companies are expected to show a strong backlash against a carbon tax burden equivalent to 65.5 trillion won in corporate tax payments over the next year. The South Korean government plans to commission a research contract on the introduction of CO2 taxes, collection methods, etc. later this year.

Minjoo’s presidential candidate Lee added that a carbon tax can be quickly agreed by societal consensus. He promised to introduce a basic income tax beforehand as part of his real estate policy and stated that the CO2 tax could realistically come before the property tax. He said that focusing too much on demand restraint approaches had distorted the market, adding that a lesser system of regulation of the areal ratio could help normalize the housing supply in terms of policy.

As for the basic income, which is based on CO2 tax revenues, Lee plans to provide consumption vouchers in the form of a regional currency. “Low growth rates result from reduced demand to impede a supply cycle. “To get it right, I want to boost consumption. If the citizens are paid cash, they will deposit it into their bank accounts. That is why I suggest distributing consumption vouchers. “

Sang-Jun Han

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