2008-06-23

DPP pushes for tax returns to help low-income famlies


The DPP held a press conference today to explain a nationwide tax return proposal and also to address future implications of Chinese tourists coming to Taiwan in the areas of immunization, spending, and national security. Director of Culture and Information Cheng Wen-tsang stated that the DPP will support a nation-wide tax return and aid low-income families initiative. Rather than to increase government spending on infrastructure which could be influenced by local politics and special interests, these funds should be allocated to the public to incite spending within the economy.

Director Cheng points out that although 44% of the people approve the Ma administration’s proposal to allocate a special budget that will support local government’s infrastructure development plans, 53.4% of the population favors using this budget for direct tax returns. Director Cheng states that, due to the rise in market prices, many countries have implemented the tax return strategy to jumpstart the economy and encourage spending. Furthermore, the KMT’s plan to use this budget to help build infrastructure is not necessarily a good remedy to the current economic situation and is not likely to have a long-lasting positive effect on the economy and could even bring about another round of price inflations.

Thus, the DPP advocates a nationwide tax return initiative that would directly return this budget, an estimated sum of $53.8 billion NT, back to the people to promote spending instead of allocating it to local governments. The DPP will suggest other forms of aid for low-income families who paid no taxes.

As for the direct charter flights between China and Taiwan, Director Cheng relayed Chairwoman Ing-wen Tsai’s direction to the DPP’s Policymaking Research Committee to come up with a comprehensive plan that deals with Chinese tourists coming to Taiwan. This includes a through discussion of topics including immunization, spending, and national security. Chinese tourists may very likely bring with them to Taiwan various plants and animals, viruses, and other illnesses that could potentially bring about epidemics such as foot and mouth disease and other such illnesses that could prove to be dangerous and damaging if proper and thorough preventative measures are not implemented.

Furthermore, it is still unclear whether or not an equal, reciprocating relationship between Taiwan and China will result from these direct flights. What these new flight routes between China and Taiwan are referred to will also be an important issue: the DPP will closely monitor these flight routes to make sure Taiwan’s status is not downgraded by these flights being referred to as “domestic” or “internal” flights and that national security is not threatened.
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