Subsequently, Chang announced the details of tax reform. The corporate income tax on financial industry companies will be raised back to 5 percent from the present tax rate of 2 percent. The amount of corporate income tax that shareholders can claim as tax credits to be deducted from their personal income tax, under Taiwan's integrated tax system, will be halved. A tax rate of 45 percent will be applied to the portion of rich people's net income that exceeds NT$10 million per year. If all these changes are implemented, the state will raise an additional NT$80 billion in tax revenue.The article frankly states that the idea that subsidizing the rich as America does will help the nation is absurd and untenable. Kudos to the writers. Taiwan's ratio of taxes to GDP is among the lowest in the developed world, the article points out.
Together with the proposed tax hikes, which are supposed to help fill the budget gap, the reforms also include tax cuts for the average wage earner. The 6.47 million wage earners and the some 510,000 people with disabilities will have their tax-deductible quota raised by NT$20,000 to lessen their income tax burden. In terms of corporate taxes, the government is for the first time using tax measures to encourage employment. Small and medium enterprises can claim additional salary expenses multiplied by 1.3 as costs. The government also encourages companies to invest in R&D to boost their competitiveness.
Kudos also to the Ma government for setting out to do this in an election year.
- If a foreigner like me lead a political protest in Taiwan, I'd certainly be arrested. But when Chinese lead protests.... the police do nada.
- Ma said it was "undemocratic" but note that prominent pro-Unification gangster Chang An-le appeared to shout slogans and generally criticized the pulling down of the state of Sun Yat-sen. How long before his cohorts start showing up to break up rallies and election activities?
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