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조세와 국가재정(Taxation and national finance)

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Title 조세와 국가재정(Taxation and national finance)
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Material Type Reports
Author(Korean)

서영택

Publisher

[서울]:한국개발연구원

Date 1982
Pages 65
Subject Country South Korea(Asia and Pacific)
Language Korean
File Type Documents
Original Format pdf
Subject Economy < Financial Policy
Holding KDI; KDI School

Abstract

This study attempts to analyze the relationship between taxes and national finance in Korea, based on an examination of the basic goals and aims of the mid- to long-term tax policy in the 1980s and the tax reforms of 1981.
Researchers have developed different methods and theories regarding the economic functions of the public sector in relation to more complex social, cultural, and political phenomena. Matters of national finance need to be understood not by a simple theoretical framework, but by taking into account their relationship to and impact on larger social phenomena, with theoretical frameworks altered to reflect reality with greater accuracy.
The government in any country plays a vital role in its national economy as the biggest producer and consumer of goods and services. In Korea, the finance of central and local governments together make up 34.5 percent of the gross national product (GNP) of 1981. The figure has been steadily increasing over the last decade, from 25.3 percent in 1976 and 26.0 percent in 1977. The fiscal functions of the government constitute a market that is distinct from the market of private economic activities.
By collecting taxes, issuing public bonds, and spending the financial resources it has accrued, the government performs many key functions, including the reallocation of resources, the redistribution of income, and the stabilization of income. These are the most generic functions of the tax system, core to any government’s fiscal policy. While there are many factors and goals to be taken into account when determining tax policy, one key question that the government must answer is whether the new tax policy it introduces will be acceptable to its citizens. Citizens themselves must keep in mind that fulfillment of civic duties—including the duty to pay taxes—is indispensable to the birth and growth of a democratic society. The recent tax reforms have taken these considerations into account, and reflect policymakers’ efforts to reform the tax system in order to achieve what the public demands of a tax system. The success of a tax policy depends on the partnership between the government and its citizens.