코리아타임즈 Diffident Leadership

[아톰]

Diffident Leadership Roh Fails to Present Firm Vision, Clear Direction

President Roh Moo-hyun’s first news conference in 2006 was quite disappointing. Most people had expected some fixed policy outlines from him, if not specific measures, on various national agenda, including the widening social and economic gulf, which he raised in his New Year’s address last week. Instead, what they heard was the repetition of rather theoretical guidelines and sketchy approaches. If Roh’s aides protest a week is too short for all that, they should have combined the two media functions into one. Apparently alarmed by escalating controversy over tax hikes, President Roh backed away from his indirect calls of last Wednesday. Had the president belittled the explosiveness of this issue amid an economic slump, he would be seen as too brave or too naïve. If Roh had intentionally raised the issue despite risks but retreated later due to public opinion, he must be reckless or weak. The bottom line is Roh should not have brought it up without firm conviction and clear direction. We think the president right in stressing the need for replenishing revenue sources to meet budget demands and enhance fiscal health. The government’s basic approach of expanding the tax base is not bad, either, if it means the elimination of underreporting and other tax evasions rather than removing exemptions for the working poor. The problem is what should come next. The Roh administration should have declared a war on tax dodgers _ well-to-do self-employed people and high-income professionals. The plugging of tax loopholes should be preceded by, or conducted simultaneously with, the government’s own belt-tightening. Of course, a more fundamental way of increasing revenues is to reinvigorate the economy through drastic deregulation. If all these prove to be insufficient to meet soaring fiscal demand, the government may consider raising tax rates or introducing new taxes. Even in this case, it should refrain from regressive taxation, which imposes the same burdens on both the rich and poor. A country’s tax burden can’t help but increase, as its economy grows and welfare demand rises. The government’s _ and the leader’s _ role is to make a painful but inevitable decision and persuade the people of its necessity. The principle of taxation should be simple: Taxpayers bear the burden according to their capacity. If the people are convinced taxes are collected on a fair and equitable basis and spent without waste, there are few reasons for their refusal to accept the unavoidable. If President Roh thinks the functions of both the market and government are needed for rectifying gaps between the haves and have-nots, he should say so along with clear policy directions and timetables. He may then propose an open debate with the opposition leader who calls for tax cuts as a better solution.