Reforming the Tax System in Korea to Promote Economic Growth and Cope with Rapid Population Ageing

Randall S. Jonesi iOECD

Organisation for Economic Co-operation and Development

关键词: personal income tax;    corporate income tax;    tax expenditures;    property tax;    capital gains taxes;    VAT;    tax reform;    earned income tax credit;    Korean tax system;    relative poverty;    environmentally-related taxes;    local tax system;    tax wedge;   

DOI  :  https://doi.org/10.1787/226518762318

学科分类：社会科学、人文和艺术（综合）

来源: OECD iLibrary

【 摘 要 】

Korea has one of the lowest tax burdens in the OECD area, reflecting its small public sector. However, rapid population ageing will put upward pressure on government spending. The challenge is to meet the long-run need for greater expenditures and tax revenue while sustaining strong economic growth. A pro-growth tax reform implies relying primarily on consumption taxes for additional revenue. There is also scope for raising personal income tax revenue from its current low level by broadening the base by reducing the exemptions for personal income. The planned cuts in the corporate tax rate should be financed at least in part by reductions in tax expenditures. The broadening of direct tax bases would also help finance an expansion of the earned income tax credit to address widening income inequality. In addition, the local tax system should be simplified and reformed to enhance the autonomy of local governments.