PPP leader’s pledge to provide tax credit to private education will undermine public education[Editorial]
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Han Dong-hoon, the interim leader of the ruling People’s Power Party (PPP), has promised another tax cut. This time, it is about private education. His plan is to provide tax credits to elementary school students for arts and physical education, such as taekwondo, art, piano, and jump rope academies. "Under the current income tax law, taekwondo academies, which are tax deductible for kindergarteners, will no longer be tax deductible when they become elementary school students," Han said on March 31, adding, "In the case of arts and physical education academies, school-aged children will also be eligible for tax deductions."
It is pathetic that the leader of the ruling party is irresponsibly announcing tax cuts without paying attention to the fact that the country is emptying its coffers due to declining tax revenues. The private education tax credit, among other things, goes directly against the stance of reducing private education that the Ministry of Education has been pushing for. It may benefit some parents with tax cuts, but it does more harm than good to society as a whole by increasing competition for private education and destroying the foundation for public education. Although it is packaged as a public welfare policy, it can only be seen as a way to pander to the private education industry ahead of the general election.
Parents spent more than 27 trillion won on private education last year even when household income was lagging behind due to high prices. The number of students decreased by 70,000 from a year ago, but the total amount of private education expenses increased by 1.2 trillion won. Private education expenses for elementary school students averaged 398,000 won per person per month, up 6.8 percent from the previous year. The reason why parents send their elementary school children to arts and sports academies is simple. This is because after-school education programs are not satisfactory or there are not many places to leave their children after school while they are working. The government's policy should focus on reducing the demand for private education by improving the quality of public education and strengthening care services for elementary school students.
Chairman Han also mentioned a cut in the value-added tax on the 28th. He aims to temporarily lower the VAT rate on daily necessities that are closely related to the livelihood of ordinary people from 10 percent to 5 percent, which is an absurd idea that is beneath notice. The VAT is a general consumption tax that is applied to all goods without differential tax rates and is the basis of the country's tax infrastructure. The rate has not changed since the Value Added Tax Act was enacted in 1976. Revising the act would destabilize the country’s entire tax system and make it more difficult for the national finances. The country's finances should not be taken so lightly. The Yoon Suk-yeol government recently faced backlash after using taxpayer money to lower the price of apples and green onions. Han and the ruling party should not cross the red line. No matter how urgent the election is, irresponsible promises cannot win public support and voters' trust.
※This article has undergone review by a professional translator after being translated by an AI translation tool.
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