• Economics
  • Published 2007

The Optimal Tax Burden Ratio in Korea (in Korean)

  title={The Optimal Tax Burden Ratio in Korea (in Korean)},
  author={Young Jun Chun and Chong-Bum An},
We attempt to predict the optimal tax burden ratio in Korea, using an altruistic family model. As of 2005, the optimal level of the tax burden ratio, defined as the ratio of the total tax burden to GDP, is shown to be higher than the actual tax burden ratio. However, the optimal ratio will fall substantially to reach 23%-24% by around 2070. This downward trend reflects the fact that current social insurance policies redistribute the resources from future generations to the current generations… CONTINUE READING