Tax is bad medicine
I, as a college student, who originally knew very little about the side effects of the capital gains tax, was quite convinced by Hsu Yu-fang’s recent article (“Planned tax on capital gains a bad prescription,” June 14, page 8) with a vivid analogy to medication.
Comparing the policy to a prescription, Hsu clearly points out that the policy imposes too much control over the weak economy in Taiwan at exactly the wrong time.
Although I am not an investor, I am still able to imagine the fear of losing so much money that holds these investors back, leading Taiwan’s economy to decline.
Most people know the economy in any country needs to be boosted in a difficult time. That was one reason why President Ma Ying-jeou (馬英九) proposed NT$3,600 shopping coupons four years ago, when Taiwan’s economy was in recession. However, lately the government insists on a capital gains tax, which unnerves investors. Isn’t it ridiculous?
As Hsu said in her last paragraph: “A good politician is like a good doctor.”
Our government should focus not just on the short term, seeing the capital gains tax as a solution, but should also look the possible negative outcome of scaring investors away.
They should consider every aspect carefully before they make any economic policy.
Questionable Chinese loans
There is certainly a lot of news to follow during these interesting times and maybe I missed it, but I don’t recall seeing these stories reported in this paper.
Xinhua news agency carried an interesting article on Tuesday last week that said Chinese People’s Consultative Conference Chairman Jia Qinglin (賈慶林) was calling for more effort to strengthen the forces that oppose Taiwanese independence and strengthen reunification efforts.
I thought this sounded about right as the Washington Post carried an Associated Press story dated June 18 that said China was promising Taiwanese investors in Chinese businesses up to US$94 billion in loans to build ties with the nation.
The question I have is: Where can these loans be put to work? Where will the demand come from to allow those businesses to repay such loans?