[`22년 국감]”Conglomerates like SK, Samsung and Hyundai will invest even if they don’t cut corporate tax” … A ‘widening of the tax credit’ is desirable

On the 5th, in the Budget Committee of the National Assembly at the Ministry of Strategy and Finance, there was a tension between women and nights due to the cascading effect of the cut in the corporate tax rate.

While the position that “a corporate tax cut can promote corporate investment” was contrary to the point that it was “an advantage that only increases the company’s reserves”.

At the National Assembly that day, Democratic Party of Korea representative Shin Dong-geun said companies have no choice but to invest to survive regardless of the corporate tax cut.

Rep Shin said, “It looks like we still expect a cascade effect through the corporate tax cut, but there is a lot of controversy among scholars. Profits are falling. The general trend is that the impact of the corporate tax cut. corporation tax has dropped significantly. “

Rep Shin insisted on the need to activate tax credits related to actual investments rather than tax cuts to promote corporate investments.

Rep Shin said, “I want to get data and reports from companies. Semiconductors like SK and Samsung have short cycles and can’t survive unless they make real investments, so they invest without reducing corporate tax.” long term with You don’t have to do it, “he said.

He added: “In practice it is better to deduct the investment tax. After stressing that the Ministry of Commerce, Industry and Energy has cut the entire budget to support companies by building industrial complexes in Pyeongtaek or Yongin, he stressed: “Companies are not asking for a reduction in corporation tax”.

Deputy Prime Minister Choo Kyung-ho said: “One of the corporate tax cuts is not an opportunity to make investment decisions. He said: “I have mentioned some companies, but in reality countries around the world are offering tax breaks and financial support to attract these companies.”

“The investment tax credit has been strengthened in the tax law amendment bill. The economy could get worse next year, so it is important to lay the foundations for economic recovery through tax cuts and exemptions, “he added.

People’s power representative Hae-jin Cho mentioned the need to support the succession of small and medium-sized enterprises. Rep Cho said, “Competitive and long-lasting companies play the role of supporting the country’s economy. It is a pity that the tangible and intangible assets we invested in hard work have been lost, but the conditions are not there. to pass it on to our children “.

In response, Deputy Prime Minister Choo Kyung-ho said: “In this tax reform, we have included a plan to reduce the tax burden compared to the previous one through a special taxation on the gift tax on the inheritance of family businesses. We will create jobs of work through generational transfer of capital and management know-how “.