Legislator Xu Tiancai's public welfare speech on "Hong Junpei Culture and Education Foundation"

Legislative Councillor Hui Tim Choi's Public Welfare Speech on "Hung Kwan Pui Cultural and Educational Foundation"

(Taiwan Business News) The highest unemployment rate in the country was once the pain of Tainan City. Legislator Hsu Tien-tsai spent five years making Tainan the city with the lowest unemployment rate and the highest labor participation rate for three consecutive years. Over the past eight years, the employed population has increased by 47,000 people, an increase of 14.6%. Xu Tiancai, who holds a doctorate in business administration from the United States, firmly believes that the first step to saving the economy is to create multiple job opportunities.

on june 7, the hung kwan pei cultural foundation and taiwan commercial daily invited legislator hsu tien tsai to speak at the chung shan lecture hall of the national sun yat sen memorial hall on "simplifying taxation, benefiting the nation and the people." legislator hsu shared his experience and background in fiscal and financial development as a legislator for many years. the audience benefited greatly.

LegCo Member Hui Tim Choi's Public Welfare Speech: Simplifying Taxation, Benefiting the Nation and the People

Among the five new capitals, Tainan City is the one that best represents Taiwan's history and culture. Legislator Hsu Tien-tsai has listed culture, tourism and science and technology as the two wings of the city. He actively promoted cultural tourism, starting with the appearance of the city.

Therefore, he made great efforts to create an investment environment and won preferential conditions from the central government to accelerate the development of industrial zones. Now Tainan City has become one of the four high-tech cities, of which 238 manufacturers have settled in Tainan Science and Technology Industrial Zone, while Nantai Innovation Park has also approved 137 manufacturers, with an overall investment of 21.5 billion yuan.

Legislator Tim Hui also drafted the Securities Transaction Tax and Securities Transaction Income Tax Reform Bill in response to the Securities Exchange Tax incident. Hsu explains that Taiwan's overall economy and environment have been damaged over the past four years, and the government's primary goal should be to save the economy rather than increase taxes. However, because tax fairness and the widening gap between the rich and the poor must be corrected, Taiwan's stock market has fallen sharply under the circumstances of contradictions in the economic structure and Minister of Finance Liu Yi-ju's announcement of a tax levy. At this time, it is not appropriate to push for a tax levy.

However, in the long run, there is indeed room for reform in the certificate tax system. The main reason is that the current government imposes a certificate transaction tax in line with the principle of simplifying administration and facilitating people, but it is not a good tax. The tax on capital transactions is a capital tax, not a tax on capital gains, resulting in a long-term contraction of the stock market. Therefore, tax reform is necessary. At present, the stock market is out of order and depressed. The uncertain factors created by the government itself should be removed as soon as possible, and the tax reform should be finalized as soon as possible.

Fair tax on securities, Xu Tiancai version most supported by private experts

In general consideration, Xu Tiancai said that his version has three main points: First, authorize the Ministry of Finance to decide the date of implementation of the tax on certificates, ensure adequate preparation and appropriate timing; second, reduce the tax on certificates, tax supporting measures and take the initiative to collect taxes; third, adopt flexible tax rates for individuals, and authorize the Ministry of Finance to decide the actual tax rate according to the economic environment at that time.

Xu Tiancai said that levying taxes on certificates and certificates is to achieve fairness and justice; lowering taxes on certificates and certificates is to activate and improve the market; separating taxes, taking the initiative to collect taxes, and simplifying administration for the convenience of people are the biggest implementation policies. The tax on securities is aimed at the soundness and long-term stability of Taiwan's capital and financial markets, while the difficulty in promoting the tax lies in many defects of Taiwan's stock market, so it is getting further and further away.

The version proposed by Mr HUI is most in line with President MA's so-called three major principles of "taxation according to ability, not losing more than one's share, and streamlining administration for the convenience of the people". The ten features of his version are:

1. Securities trading and income tax are integrated into one, and the tax system is concise. 2. In line with the resumption of tax collection on certificates, the tax rate on certificates shall be reduced to 1.5 per thousand. 3. Full levy, separate taxation, personal tax rate of 0-10%(authorized finance department to set it in stages according to the situation), and eliminate headcount. 4. The tax on foreign capital certificates shall be increased to 3.5 per thousand to avoid false foreign capital. 5. The "minimum tax burden system" applies to the corporate certificate tax, and the current tax rate of 10% and the deduction amount of 2 million yuan remain unchanged. 6. Income from trading in securities, futures and options shall not be taxed. 7. The individual's current year and the following three years, the legal person's current year and the following five years profit and loss offset each other. 8, holding shares halved for three years; five years tax-free. 9. Taxes shall be collected by the government on its own initiative; taxpayers may apply for reimbursement, and the public may be exempted from tax inspection. 10. Authorize the Ministry of Finance to set its own implementation date, pass the tax law first, and wait for the time to be ripe and socially acceptable before imposing the tax.

Xu Tiancai still put forward his own version, which has been affirmed by professional newspapers and stock market names. Taiwan's economic autonomy is shrinking. Taiwan's orders and foreign (Chinese) production are serious. If there is no developed financial market and the service, R & D and innovation industries are allowed to continue, Taiwan's economy will definitely fail! Secondary (circulation) market decline, Taiwan's capital market will never recover, regeneration, strong! The importance of tax certificates to Taiwan is self-evident.

Among them, the second item returns to the original intention of legislation and reduces the tax rate of certificates and payments by 1.5%. This is to "restore the past normal" before increasing the tax rate of certificates and payments; the third item adopts separate taxation of certificates and payments, levying a tax rate of 0~10% is reasonable, which will not cause large-scale selling pressure of major shareholders and can also reduce the number of households; the fourth item imposes an additional tax rate of 0.5% on foreign capital to avoid fake foreign capital, which is also reasonable; and the ninth item is collected by the government on its own initiative, which will not disturb the public. The most important item, item 10, will be introduced when the time is ripe. It is even more important at a time of global economic turmoil. Although this will allow retail investors to earn small profits and pay taxes, it will not allow capitalists to leave Taiwan. Only then can the capital market survive healthily and for a long time, and retail investors can really earn money.

"Limited" tax on securities, but the timing of introduction is more important; the current international situation is unstable, and the order of policies cannot be wrong. In the past, the government punished the people with penalties, but now it uses exorbitant taxes. When South Korea has just achieved the goal of "20 or 50" developed countries, Hong Kong ranks first in the global competitiveness ranking in IMD, and Singapore attracts the rich from all over the world by means of low tax rates, the international situation is turbulent now. The government does not want to "promote profits" but only wants to levy more taxes from the rich. How can Taiwan be competitive?

The then Minister of Finance, Li Guoding, chose to pursue economic development first between economic development and fair taxation. He introduced a series of incentive investment regulations, creating a miracle in Taiwan's electronics industry. He was also honored as "the father of Taiwan's science and technology". This is the historical positioning that is not exceeded. Xu Tiancai put forward a version that is more "fair and just". If the Kuomintang consensus version is not greatly reformed by real experts, I am afraid it will bring down the capital market. Therefore, the people proposed not to include personal comprehensive income, as well as to reduce the tax rate too high. The government insisted on crossing the barrier. Investors could only confront the government, which greatly reduced the wealth of each investor.

LegCo member Hui Tim-choi mini file

Member of the Legislative Yuan Xu Tiancai holds a bachelor's degree and a master's degree from the Department of Economics of the Chinese Culture University. He has passed the doctoral qualification examination in economics of the New School of Social Studies in New York, USA, and is studying for a doctorate in business administration at Rutgers University in the United States. He served as a member of the 2nd, 3rd, 4th and 7th Legislative Yuan, Mayor of Tainan in the 14th and 15th terms, Finance and Budget Convener of the Legislative Yuan, General Assembly of the Democratic Progressive Party in the Legislative Yuan, Associate Professor of the Cultural University, Chairman of the Banking Department, Founding Chairman of the Taiwan Global Search Association, Founding Chairman of the Taiwan Healthy Cities Alliance, etc. He is currently a member of the 8th Legislative Yuan.

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