Lee determined to cut property taxes for the rich

SEOUL, Sept. 24 (Yonhap) -- President Lee Myung-bak on Wednesday defended his
government's proposal to drastically slash property taxes for expensive home
owners, snubbing growing public criticism that his policies are preferential to
the rich.
Lee said that the government proposal, which would abolish the hefty
comprehensive property tax for owners of homes valued at over 600 million won
(US$522,000) apiece and steeply lower the special tax for owners of homes priced
above 900 million won a unit, is primarily intended to rectify the problematic
taxation system, according to his spokesman.
"The genuine purpose for the planned property tax cuts for expensive home owners
is not to lower tax burdens for the wealthy, but to correct a wrongful taxation
system," Lee was quoted by presidential spokesman Lee Dong-kwan as saying in a
meeting with his senior secretaries.
"The Lee Myung-bak government is still committed to improving and stabilizing the
livelihood of ordinary people."
Lee's remark came amid an intensifying debate within local political circles over
the government's bid to gradually repeal the tax system applied to high-end home
owners, which was introduced three years ago by Lee's predecessor, Roh Moo-hyun.
Currently, the owner of a home valued at 600 million won pays about 1 million won
in comprehensive property taxes annually, while a house valued at 900 million won
incurs a special ownership tax of slightly over 2 million won a year. The
comprehensive property taxes, legislated by the Roh government in 2006 to help
stabilize the local real estate market, are collected in addition to regular
property taxes.
Under the Lee government's revision, owners of homes valued at less than 900
million won apiece will be exempted from the taxation, while the amount of
comprehensive property tax for the owner of a 900 million won home will be
reduced to a mere 20,000 won.
Lee's spokesman also strongly defended the government's tax reduction scheme for
the rich in his media briefing.
"Some contend that the revision of the comprehensive property taxation system is
just intended for the welfare of the richest 1 percent of the population. But the
government's position is that it is interested in eliminating any 'punitive'
taxes on a specific group of people," he said.