Ruling Party Backs Tax Reform Plan, but Internal Concerns Linger Over Public Sentiment

[Anchor]

The Democratic Party has defended the government's tax reform proposal, calling it tax normalization for people's livelihoods. However, voices of concern regarding public sentiment on real estate are emerging from within the party.

Reporter Ha Jeongyeon has the details.

[Reporter]

The Democratic Party did not issue an official commentary immediately after the government announced the tax reform plan late yesterday afternoon (August 3).

Following internal discussions, the party released its stance today.

[Han Byung-do / Democratic Party Floor Leader: In short, the goal of this reform plan is tax normalization for growth and people's livelihoods.]

However, voices of concern are being detected among lawmakers representing constituencies in Seoul.

Ahead of the general elections in 2028, there are worries that it could negatively affect public sentiment in the capital region, which is relatively more sensitive to the real estate market.

A Democratic Party lawmaker representing a district in the so-called "Hangang Belt" told SBS, "It is not to the extent of major worry, but it is not a level to be complacent either," adding, "An ease in the tax burden for single-home owners who are non-residents is necessary."

Another lawmaker from the Hangang Belt also expressed concern, saying, "I believe that psychological resistance to the tax reform messages previously issued by the government was already partly expressed during the last local elections."

Public remarks calling for measures to enhance public acceptance have also emerged.

[Kim Young-ho / Democratic Party Lawmaker (Seodaemun-gu B, Seoul, SBS's Kim Tae-hyun's Political Show): The ruling party needs to craft such tax reform plans that the public can accept and understand.]

Democratic Party lawmakers representing Seoul constituencies plan to hold a meeting the day after tomorrow to discuss real estate policies, including the tax reform plan.

The Democratic Party leadership has left open the possibility of revisions.

[Han Byung-do / Democratic Party Floor Leader: During the upcoming National Assembly review process, we will carefully examine the policy's effectiveness, public acceptance, and the predictability of the system.]

The People Power Party launched an offensive, claiming that President Lee Jae-myung has broken his presidential campaign promise not to control housing prices through taxes and declared the dropping of a "tax bomb."

[Jang Dong-hyeok / Leader of the People Power Party: This is a punitive tax that treats homeownership as a crime. It fails to control the housing prices they are supposed to control, and instead targets citizens who own homes.]

With the rival parties showing stark differences in their positions, rough sailing is expected during the National Assembly's review process of the tax law amendment bill, which is anticipated for the regular session.

(Photo: Yonhap News / Video reporting: Oh Young-chun, Lee Seung-hwan / Video editing: Yu Mi-ra / Design: Jang Seong-beom)
※ Please note: This article was translated by AI and may contain errors.