The purpose of this paper is not only to compare the alternatives of introducing local income tax and local consumption tax but also to examine the effects of the local tax proposals announced in September 2009 by the executive branch. First, we barely expect greater local tax autonomy because local units cannot decide the tax base or tax rate, even though the tax system is more complex and revenue might slightly increase. Second, the government should take supplementary measures such as limiting the upper tax rates to avoid tax competition. Lastly, the revenue distribution index employed by local consumption tax proposal is not desirable in terms of the power to determine the tax amount which is decided by the government, not the taxpayers, at the margin.