The nation needs to build a sound tax system, remove legal tax loopholes for the rich, and implement a fair, just and secure system of taxation based on the ability to pay. If it fails to do so, and instead keeps cutting taxes for businesses, it will be hard put to increase revenue and cut spending. In that case, government finances cannot be stabilized and Taiwan will sooner or later stumble over a fiscal cliff.
Lee Wo-chiang is a professor in the Department of Banking and Finance at Tamkang University.
Translated by Julian Clegg