hankyoreh

A report by the National Statistical Office on March 12 confirms that only households in the upper 20 income bracket have enjoyed tax cut benefits pursued by the Lee Myung-bak administration, while other households’ tax burden increased.

According to the National Statistical Office (NSO) report, the ordinary tax payment in 2009 decreased to 94,541 Won ($84) per month by 4.4 percent compared to that of 2008 (98,857 Won per month). The year 2009 was the first year the government enacted its tax revision plan created in 2008, in which the income tax and comprehensive tax rates for some income brackets decreased.

Although overall household taxes decreased, the benefits were focused on households in the upper 20 percent income bracket. Households in the bottom 20 percent of income bracket in 2009 experienced an increase in taxes of 16,181 Won, a 14.2 percent increase from 2008 (14,171 Won). With the exception of households in the top 20 percent of household income, who enjoyed a 10 percent decrease in taxes from 310,610 Won to 278,367 Won, every household experienced a tax increase last year.

An NSO official said, “Households in the upper 20 percent income bracket were most affected by the income tax decrease, while other households’ tax increase were due to increased taxes on automobiles.”

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