Legislator Fei Hongtai's commonweal speech on Hong Junpei Culture and Education Foundation

Legislative Councillor Fei Hongtai's Public Welfare Speech on "Hong Junpei Cultural and Educational Foundation"

(Taiwan Business News) Greece, Spain and other European debt countries are caught in political and economic storms due to financial crises, and they must rely on the European Union to rescue them. Taiwan's financial crisis is emerging rapidly, the severity of the problem is close to that of European debt countries, and there is no international rescue mechanism to rely on. Therefore, only by timely self-rescue can economic disaster be avoided.

Finance is the mother of government affairs. All kinds of governance and construction are closely related to finance. How to improve financial efficiency, do the best thing with the least money, and spend every penny on the cutting edge. on april 12, 2001, the hong kwan pei cultural foundation and taiwan daily newspaper invited legislator fei hung tai to speak on "fiscal soundness benefits the nation and the people."

Traditional government functions are to ensure national security, maintain public order and justice, but modern pluralistic government must go further to promote income distribution equalization, provide diversified social welfare, maintain economic stability and sustainable development. But what if the goals are prosperous, sustainable, and just? What if they clash?

Legislator Fei Hongtai's Public Welfare Speech: A Sound Fiscal Plan to Inject Fresh Water into the Economy

For example, the tax on securities, which has been debated for a long time in society, is levied on the profits earned from investing in stocks. Levying a stock exchange tax will help achieve the principle of fairness and justice by allowing those who earn more to pay more tax. However, it will also raise the threshold for investment. Therefore, the stock exchange tax law passed last year has been criticized by public opinion as causing a sharp decline in stock market trading volume and affecting economic development.

The possible introduction of an energy tax will have a greater impact on businesses that use a large amount of petrol, diesel oil, kerosene, aviation fuel and liquefied petroleum gas (excluding solvent oil), and will inevitably have an impact on economic growth. However, for the general public who use less petrol, the impact will not be significant. On the contrary, it will have the advantage of "tax reduction" by increasing the comprehensive tax deduction or tax allowance.

Finance is the mother of national politics. To deal with financial problems, we must take into account the needs of long-term and short-term governance, establish the priority of reform, and solve short-term financial crisis and long-term financial structural adjustment. Only in this way can we effectively solve fundamental problems. In the short term, the central government is currently facing financial difficulties, and it has to cope with the rapid economic downturn, and the local government is on the verge of "cooking without rice" financial crisis.

These zero-sum total reforms will affect the whole body. How the government can make policies that satisfy both parties and are willing to let the people bear together requires a lot of wisdom to solve.

Legislator Fei Hongtai said that although Taiwan's government debt is "internal debt", which is different from the "external debt" of European countries, government debt, whether "internal debt" or "external debt", is essentially a debt of all the people, and ultimately must be repaid by the people themselves. The more serious the government debt problem, the less disposable financial resources and the shrinking wealth of the people. The longer the problem drags on, the more serious the problem of poverty becomes, and it is delayed from generation to generation, leaving future generations to become a "poor generation" that is hard to turn over.

More seriously, the fiscal crisis has led to a sharp decline in the quality and quantity of public services and a reduction in investment in infrastructure and education, thus not only weakening the momentum of economic growth, but also seriously damaging the competitiveness of the country, resulting in a vicious circle of economy. this is precisely the portrayal of taiwan's declining economy over the past few years. The government must manage the rising financial risks and vigorously reform government finances to turn the crisis into a turning point.

In February 2014, the Ministry of Finance proposed a fiscal soundness plan to adjust business tax, income tax and increase special salary deductions. The fiscal soundness package has three main points, namely, controlling the scale of government debt, reviewing unreasonable expenditure and reforming the tax system. Among them, the tax system reform is not only tax reduction and tax increase, but also has the flavor of helping the poor with the rich. The business tax rate for banks and insurance finance will be raised from 2% to 5%; dividends under the two-in-one tax system can be deducted from tax, and will be reduced by half to offset comprehensive tax. It is estimated that the treasury will receive 68.5 billion yuan in tax revenue in one year. Adjust the financial business tax rate. The business tax on banks and insurance is planned to be adjusted back from 2% to 5% in 1999. It is estimated that the tax revenue will increase by 21 billion yuan. The increased tax revenue will be returned to the national treasury. The original tax revenue will still be allocated to special reserve funds such as deposit insurance.

To balance the tax burden, the draft stipulates that only half of the 10% profit enterprise income tax levied on the net dividends (surpluses) distributed to shareholders who are not resident in Taiwan can be offset against the withholding tax on the net dividends (surpluses). In order to balance the tax burden of sole proprietorship, partnership organization and company organization under the partial calculation deduction system, the draft stipulates that when sole proprietorship and partnership organization profit-making enterprises handle settlement, final account and liquidation declaration, half of the annual tax payable amount shall be deducted from the unpaid withholding tax; small-scale profit-making enterprises do not need to handle settlement declaration, and their profit-making enterprise income shall be subject to comprehensive income tax according to regulations.

Legislative Council Member Fei Hung-tai profile

Legislator Fei Hongtai holds a bachelor's degree in statistics from National Chung Hsing University and a doctor's degree in statistics from the University of Kentucky. He once served as the 7th, 8th and 9th municipal councillors of Taipei City, the 8th deputy speaker of Taipei City Council, the executive director of Lien Song's Taipei City campaign headquarters, a member of the Economic Development Advisory Committee, an associate professor of the Department of Statistics of Taipei University, an associate professor of the Department of Statistics of Chung Hsing University, an associate professor of the Department of Business Management of Ming Chuan University, a member of the 17th Central Committee of the Chinese Kuomintang, an audit committee of the Legislative Yuan, a convening member of the Legislative Yuan Procedure Committee, and a secretary general of the Legislative Yuan Kuomintang. Chairman of the Finance Committee of the Legislative Yuan, Convening Member of the Finance Committee of the Legislative Yuan, Convening Member of the Procedure Committee of the Legislative Yuan, Standing Member of the 18th Central Committee of the Chinese Kuomintang, Associate Professor of the Graduate Institute of Statistics of Taipei University, etc.

Hong Junpei Foundation 103 Years Public Welfare Speech