An effective progressive taxation system could also be a tool to help prevent an increasing wealth gap. A number of tax reduction measures adopted by the government in recent years, such as the suspension of the securities transaction tax, the cancellation of the commodity tax, a 50 percent cut in the land-value increment tax and the integration of personal and business income taxes, seem to have favored rich families.
Analysts said all these measures have increased the tax burden of salaried people while undermining the government's ability to open new welfare service programs because of dwindling tax bases.
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