지방자치단체의 자치재정권과 조세경쟁 - 제주특별자치도의 재정특례를 중심으로 -

Abstract

This article aims to study whether the intervention of central government to the tax policy of Jeju Special Self-governing Province(hereinafter referred as "JSSGP") is justifiable and to suggest policy implications to minimize a negative impact caused by the tax competition between local governments. JSSGP has been founded by 「the Special Act on Establishment of Jeju Special Self-Governing Province and Jeju International City」 since July 1, 2006. The purpose of this Special Act is to contribute to the growth of the nation by developing Jeju Province into a special self-governing province with higher-level autonomy and low regulation for business activities. JSSGP revised a by-law to lower acquisition tax rate for inducing the registration of leasing motor vehicles which tax base is movable to its jurisdiction. A relatively lower tax rate enables JSSGP to raise more than 30 billion won tax revenues for the last seven months. Other provincial governments and metropolitan governments tried to lower their tax rates for expanding tax revenues. As a result, the Ministry of Public Administration and Security(hereinafter referred as "MOPAS") which is a central government agency being in charge of supervising all local governments has intervened local tax policy to prevent the local governments from lowering tax rates. The reason that the MOPAS has engaged in local tax policy is that the tax competition is a wasteful competition for scare capital through reduction in tax rates in spite of the fact that there is a different view, the tax competition enhances the efficiencies of local governments. The MOPAS has already submitted a revised bill to repeal the elastic tax rate system in movable tax bases which system was introduced in 1991. The MOPAS had seemed to promoted tax competition in tax bases such as aviation and shipping registration more than 20 years. However, the MOPAS changed policy direction from non-involvement to intervention in the tax competition of local governments. The policy change implies that the central government violates doctrine of stare decisis as well as the fiscal autonomy of local government. At the same time, the intervention of central government to the tax policy of JSSGP is against the policy goal and the Special Act for establishing Jeju Special Self-Governing Province and Jeju International City. The central government transferred more 1,400 administrative powers to JSSGP but resources equivalent to those which were devoted to the exercise of those powers are not transferred to JSSGP by the central government. This is a motive that JSSGP makes the use of tax competition. But the MOPAS is planning to revoke the special fiscal autonomy of JSSGP. This study suggests three solutions to protect the fiscal autonomy of local government from possible violations: first, the intervention of central government shall be stopped at the minimum level for local autonomy; second, the outcome of central government intervention shall be decided to improve the revenues of less affluent jurisdictions; and third, the policy goal and vision of JSSGP shall be protected and developed by the minimizing intervention and transferring financial resources from the cental government.