South Korea’s tax revenue shortfall of 11.7 trillion won and a 25% corporate tax cut are putting government finances in crisis.
1Bird ★.Dec. 2, 2024 (Mon) 07:54:24.80ID:PjweravK
National tax revenues are not as expected, and the South Korean government’s finances are in dire straits. As we have reported on money1, the media has been pushing hard, claiming that tax revenues are constantly short, so South Korea’s Ministry of Strategy and Finance (equivalent to the Ministry of Finance) has begun issuing press releases on the matter. On November 29, 2024, the Ministry of Planning and Finance released the “Status of National Tax Revenue for October 2024.” Please see below. From January to October 2024, the South Korean government’s total national tax revenue will be 293.6 trillion won, down 11.7 trillion won compared to the same period last year. One thing to pay attention to is corporate tax. The cumulative total for 2024 will be only 58.2 trillion won, while the cumulative total for the same period in 2023 will be 76.1 trillion won, a decrease of 17.9 trillion won. This is actually a 23.5% decrease. This clearly shows that the company is not making a profit. If companies don’t have money circulating, employees’ salaries won’t increase, and it’s not surprising that we’ll experience an economic downturn. Even though national tax revenue (as of October) is less than 300 trillion won, the South Korean government’s expenditure budget for 2024 is 656.9 trillion won. What should I do about this? Well, expenses will probably go as planned (since it’s not enough anyway). The reality in South Korea is that the government has no choice but to take on more debt to avoid going bankrupt. (Yoshida Hunting @dcp) Money 12024.12.02 ※Related thread Samsung’s fall will lead to the collapse of the Korean economy. The reason why the breadwinner that pays 20% of all corporate taxes fell into poor performance [11/19] [Insect Encyclopedia★].
>>13 If the government could completely control miscellaneous income, it would probably increase even more. I hope they can do something about it. We’re paying our taxes properly.
Samsung, Posco, Lotte, etc. seem to be out of luck. Small businesses can’t even pay the minimum wage. Most self-employed individuals have an average annual income of less than 1.3 million yen.
>>23 The strangeness of tax revenues increasing even though the economy isn’t growing This is an abnormal country that has raised taxes and crushed the economy every time it showed signs of recovery.
Since this is an emergency, can’t the Japanese government, as an exception, grant the Korean government the right to collect taxes on individuals and corporations within Japan?
>>40 However, Koreans think that “Korea has a higher GDP per capita than Japan. In other words, South Korea is at the top and Japan is at the bottom. Lower-ranking Japan should serve higher-ranking South Korea. ” So they are increasingly taking bribes from Japan.
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