Young FRANKenstein
Joined: 02 Oct 2006
Location: Castle Frankenstein (that's FRONKensteen)
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 Posted: Sun Jan 16, 2011 9:20 pm Post subject: Re: 1.5 million won being deducted from paycheck |
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| methdxman wrote: |
| Young FRANKenstein wrote: |
| methdxman wrote: |
| Young FRANKenstein wrote: |
| whitestboyalive wrote: |
| The government is raising taxes on us foreigners, and this 1.5 million won deduction is the result of that. Which means, my paycheck in February will be a mere 600,000 won. |
They're not raising taxes. They're just eliminating the 30% of your salary that is/was tax-free. |
Which means that they're raising taxes. Raising taxes refers to anything that increases government tax revenue. |
Semantics. The tax rate has always been the same for everyone in Korea. Foreigners have just enjoyed a 30% exemption. Taking away the exemption is not raising taxes; it's telling foreigners they are no longer special and have to pay just as everyone else has to. |
It's not semantics, it's reality. Income tax rates are hardly ever increased. It's political suicide. It's always the last resort.
But you still raise "effective" tax rates by expanding taxes which could mean expanding existing taxes or levying new ones. In this case, the 30% of the exemption is being trashed so it's an expansion of an existing tax against foreigners.
Changes in effective tax rates whether it's your personal effective tax rate or from the government's point of view are all that matter in most cases since actual tax rates almost always stay the same (at least for income).
In short, raising taxes means expanding them or touching the actual rates. In any case, more money out of our pockets. |
You are arguing one thing, and I'm obviously arguing something completely different.
Yes, the money we pay to the government tagged as taxes is increasing, but the TAX RATE itself is not. The tax rate is still the same. We only pay more because OUR exemption is being taken away. If the TAX RATE were being increased then Koreans also would be paying more taxes. And they are not. The government is only asking foreigners to pay what every other Korean is also being asked to pay. The same rate, not an increased rate.
Increasing one's individual tax burden is not the same as increasing the tax rate. Tax burden and tax rate are not the same. |
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