지방재정 관점의 고향사랑기부제의 합리적 개선방안 = How to Rationally Revise the Hometown-Loving Donation from View of Local Finance

다국어 초록 (Multilingual Abstract)

The successful early enforcement of the hometown-loving donation (“HLD” hereafter), adopted in 2023, is largely due to full-amount tax credit as well as local governments’ return presents. However, the effect of HLD is very discriminative, and HLD could have a very negative effect on the tax revenues of particular local governments. This kind of problem has actually happened in Japan, where a similar system was adopted as early as in 2008, and thus how to rationally revise HLD from view of tax laws should be prepared in advance for the long-term and stable management of HLD.
Based on the analysis of this study, HLD should be revised so that the adjustment measures of local income tax credit among local governments should be enforced. That is, as the donation amount is expected to rise rapidly in the future, the tax revenue loss of particular local governments (“losing municipalities”) from HLD is also predicted to grow fast and, as a result, to become a serious obstacle of the financial operation of those governments. Thus, the tax revenue profit of other governments (“winning municipalities”) from HLD should be presented to losing municipalities. Detailed methods of the adjustment measures could be referred to the enforcement cases of local consumption tax.
Furthermore, HLD should not be allowed to the donation of corporations considering its potential harmful effects. However, in case it is allowed, as the tax revenues loss of losing municipalities could be much more serious than that for the donation of individuals, the same adjustment measures of local income tax credit among local governments should also be implemented.