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[When the Hörald Economy
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Although the government is seeking to expand tax support for young people to encourage marriage and childbirth, analysis suggests that the effect will not be significant because the young generation does not have a large income and therefore does not have a large tax burden.
According to the tax burden status of wage earners by gender and age prepared by the National Assembly Budget Office (Office of Budget) on the 17th based on National Tax Service statistics, the effective tax rate, which refers to the actual burden of income tax, for people in their 20s and 30s was much lower than the average.
As of 2022, the effective income tax rate for men under 30 was 2.77%, which was one-third of the average for all men (8.07%). The effective tax rate for men in their 30s was also below average at 5.73%. Among women, those under 30 were 2.05%, and those in their 30s were 4.27%, which was lower than that of men.
Young people also had a high rate of tax exemptions. About half of men under 30 years of age (47.74%) and women (51.48%) were tax exempt. Among those in their 30s, 22.10% were men and 37.15% were women. This is the effect of various deduction and exemption systems.
For men with comprehensive income, the effective tax rate was 6.46% for those under 30 and 10.23% for those in their 30s, which was lower than the average for all men (15.87%). Among women, those under 30 were 4.63% and those in their 30s were 7.90%, which was lower than the average for all women (10.44%).
The proportion of tax-exempt persons with comprehensive income was 34.78% and 39.75% for men and women under 30 years of age, respectively. Those in their 30s were 23.69% and 30.75% for men and women, respectively.
The government’s 2024 tax law revision includes the establishment of a new marriage tax credit (up to 1 million won when reporting a marriage), expansion of the tax exemption for companies’ childbirth support, expansion of the child tax credit amount, and expansion of the target of tax support for housing subscription comprehensive savings. In addition, when a man and a woman who each own one house get married and become two homeowners per generation, it was decided to expand the period for which one house is considered per household for capital gains tax and comprehensive real estate tax from 5 years to 10 years.
https://n.news.naver.com/mnews/article/016/0002389267