The National Assembly appears to be headed for yet another deadlock over a possible tax increase on the top bracket of income individuals and corporations. 

Following President Moon Jae-in’s declaration Friday that it is “time to consider tax hikes,” the ruling camp on Monday confirmed the issue as the main agenda item at the next government-party consultation meeting slated for Thursday. 

“The blueprint for a ‘pincette tax increase’ on ultralarge companies and ultrahigh-income individuals will be discussed from this week,” Democratic Party of Korea spokesperson Park Wan-ju said. 

Highlighting its limited target -- top earning individuals and corporations only, party officials are calling it a pincette tax increase, after the French word for tweezers. 

Park once again stressed the limited scope of the proposed tax rates change, adding that it would be “the starting point of efforts to remove the accumulated evils” of Korean society. Throughout his campaign, Moon promised to address wrongs that have accumulated in Korean society, including social polarization. 

Last week, the ruling party’s chief Rep. Choo Mi-ae suggested income and corporate tax rates for top earners be raised respectively by 2 percentage and 3 percentage points. She suggested the new rates be applied to individuals with over 500 million won ($449,000) taxable annual income and companies with annual operating profits exceeding 200 billion won. 

According to Rep. Kim Tae-nyeon, Democratic Party’s policy chief, a range of tax issues including the proposed hike will be discussed at Thursday’s meeting between the party and government officials. 

The opposition parties in response have stepped up their attacks, voicing views ranging from a “fearsome tax bomb” to backtracking on President Moon Jae-in’s part. 

“For now, the policy of a fearsome tax bomb is limited to ultrahigh earners, but nobody can predict how far (the tax increase) will be applied in the future,” Rep. Chung Woo-taik, floor leader of the main opposition Liberty Korea Party, said, claiming the government was using Choo to set the stage for related discussions to take place. 

Chung added that President Moon had appointed “scarecrow prime minister and ministers,” to push through his policies “like a one-man show,” warning the party would take a firm stand against populism in the regular parliamentary session. 

However, polls suggest the main opposition’s stance on the issue may be falling out of line with its supporters. According to a survey conducted by Realmeter, nearly 70 percent of Liberty Korea Party supporters agreed with the changes suggested by the ruling party. 

The survey showed that more than 95 percent of Democratic Party supporters see the changes as necessary, while about 80.8 percent of Bareun Party supporters and 91.6 percent of People’s Party supporters also agreed. 

The more moderate conservative Bareun Party refrained from outright opposition, but demanded an apology from President Moon Jae-in before tax hikes are discussed. 

Saying Moon was playing on public opinion by discussing the issue as if it were a decided course of action, Baruen Party chief Rep. Lee Hye-hoon said Moon must apologize over two issues.

Lee said, “178 trillion won is outrageously insufficient for the 100 tasks. (Moon) should tell the public honestly, and ask for their understanding that (projects the government) can’t handle cannot be done.” 

According to the National Tax Service, about 18,000 individuals currently fall in the top tax bracket that applies to those whose annual taxable income comes in at over 500 million won. The party claims the proposed increase would result in about 4 trillion won additional taxes gathered from such individuals and concerned companies. 

In comparison, Moon’s pledges are estimated to cost upwards of 170 trillion won. 

Lee went on to say that the president must apologize for raising the issue of a tax increase when he had promised that a tax hike was a last resort during his campaign. 

Citing Bareun Party presidential candidate Rep. Yoo Seong-min’s position that more welfare is impossible without tax hikes, Lee criticized the plans for being unrealistic. 

The three-term lawmaker also attacked plans for using the general public’s hostility toward high-income groups. 

By Choi He-suk (cheesuk@heraldcorp.com)