지방세 비과세･감면이 지역경제에 미치는 영향: 강원도 18개 시군을 중심으로

The South Korean central government has been promoting tax exemption/reduction to spur local economic growth. However, since this leads to a decrease in tax revenues, the government has struggled to raise local tax revenues. While local fiscal soundness must be strengthened through efficient and systematic management of local tax exemption and reduction, a fundamental change in the systematic implementation of tax exemption and reduction must be introduced, because the current system has been ineffective. This study explores an empirical analysis on the effects of tax exemptionand reduction for 18 cities and counties in Gangwon-do on local finance, focusing on gross regional domestic product (GRDP). The findings indicate that the effect of local tax exemption and reduction on the regional economy varies depending on the types of local finance in general. Above all, an increase in the total amount of tax exemption/reduction has had a positive (+) impact on the local economy, which is significant because the tax exemption and reduction policy has recently been enforced to encourage growth of the local economy in cities. But an increase in the total amount of taxexemption/reduction does not have a significant effect in counties. Increases in the total amount of tax reduction/tax exemption and reduction (e.g., restriction of special taxation and reduction ordinance)have had a positive (+) impact on the local economy in cities. In contrast, an increase in the total amount of tax reduction (e.g., local tax act) has had a negative (-) impact on the local economy in cities. Also, an increase in the total amount of tax exemption and reduction (e.g., local tax act) has had a positive (+) impact on the local economy in counties. But an increase in the total amount of taxexemption and reduction (e.g., reduction ordinance) has had a negative (-) impact on the local economy in counties. Policy implications based on the results of the empirical analysis are as follows. The central government’s argument concerning the ability of the tax exemption and reduction policy to contribute to the activation of the local economy is merely rhetoric, and financial conservation is needed. In particular, tax exemption and reduction (e.g., local tax act) should be regulated in cities, and tax exemption and reduction (e.g., reduction ordinance) should be regulated in counties.