Some military families could benefit from Korean tax cut

[unhappycamper]

Some military families could benefit from Korean tax cut
By Erik Slavin and Hwang Hae-rym, Stars and Stripes
Pacific edition, Thursday, September 4, 2008

SEOUL — Some servicemembers with South Korean spouses could see their household incomes rise in the wake of a 26 trillion won (about $22.9 billion) tax cut announced by the South Korean government Monday.

The tax cut, which includes many proposals that will be phased in over five years, comes as fears of a national economic crisis have pummeled South Korean currency and equity markets.

The South Korean currency ended the day at 1,134 won to the dollar Tuesday. Last November, 898 won bought a dollar.

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Under the announced tax plan, all South Koreans will see a 2 percent income tax cut by 2010. Workers will be able to deduct an extra million won ($882) for a child in school or college. They also will be able to deduct 7 million won ($6,173) for medical expenses, up from 5 million won.

A 5 percent cut in the maximum corporate tax rate, along with lower capital gains and inheritance taxes, also are included.


Rest of Trickle Down Theory article at: http://www.stripes.com/article.asp?section=104&article=57171