경마 레저세의 최적세율 도출 및 경제적 파급효과 분석

[Purpose]This study investigates the optimal tax rate and economic effects of horse racing taxation. [Methodology]Korean government imposes tax on total sales of horse racing tickets, which consists of leisure tax(10%), local education tax(4%), and special rural development tax(2%). The current horse racing taxation has following problems. Firstly, even though the main purpose of horse racing taxation should contribute to the external diseconomy correction effect, the current horse racing taxation has been classified as an ordinary tax. Secondly, the total tax burden of horse racing tax is considerably high because the tax base of leisure tax is a gross－sales, not a net sales, and also because the total tax rate including surtax of leisure tax is 16%. Thirdly, the tax expenditures of local education tax and special rural development tax are not significantly related to their tax revenues. Thus, in order to suggest appropriate improvement of horse racing tax, we investigate the optimal leisure tax rate by estimating Laffer curve. Also, we suggest 10 measures for improvement to reduce leisure tax rate including its surtax. In each scenario, we analyze how much tax revenues will decrease. In addition, we investigate how it affects the economy to invest the reduced tax revenue in the horse industry and horse welfare projects. [Findings]As a result, we find the optimal leisure tax rate is 8%. In each scenario, the reduction in the horse racing tax rate results in a decrease in tax revenues. However, if the reduced tax revenue is invested in the horse industry and horse welfare projects, positive economic effects, such as increase in employment and industry－related production, will be greater than a drop in tax revenues. [Implications]Based on these analytical results, we suggest reducing the leisure tax rate from 10% to 8% in a short－tem plan. Moreover, Korean government needs to consider the long－term plan to abolish local education tax and special rural development tax.