Political parties step up debate over welfare expansion

Political parties have stepped up their offensives over welfare expansion that they began early this year with the presidential election approaching. Thus far, the three presidential candidates have made a variety of welfare pledges without discussing raising tax revenue to fund more welfare programs.

The debate over tax increases is rapidly shifting from overall welfare programs to specific funding.

Lee Jung-woo, who heads the economic reform committee for Moon Jae-in, the candidate of the main opposition Democratic United Party, told a radio talk show Wednesday that the comprehensive real estate tax introduced by the previous Roh Moo-hyun administration is the "best tax in theory and practice." He added, however, that the proposed progressive wealth tax was "not a good tax."

Lee was responding to a wealth tax proposal made last week by Kim Moo-sung, the head of the ruling Saenuri Party`s campaign headquarters who said, "To increase welfare, it is inevitable to increase taxes."

Kim Jong-in, chairman of the ruling party`s committee on handling economic and social campaign pledges, said Wednesday that his party could consider making tax revenues more effective by thoroughly reviewing the essence of the comprehensive income tax and value-added tax, the main pillars of the tax system.

He added that this does not necessarily mean more taxes because the number of tax-exempt people can be adjusted without raising tax rates.

jarrett@donga.com gaea@donga.com