Chen dismisses speculative talk of a tax increase

President-elect Chen Shui-bian (陳水扁) yesterday feebly rejected a suggestion he intended to raise taxes -- a move he had pledged not to consider during his election campaign.

In response to comments made on Friday by Finance Minister-designate Hsu Chia-tung (許嘉棟) that there was a possibility that the new government would "consider a limited tax hike" in order to realize Chen's so-called "3-3-3" social welfare program, Chen yesterday distanced himself from the possibility.

"Theoretically, there is room for tax increase -- but it doesn't necessarily mean that the new government will go for it," Chen said, at a garden party yesterday sponsored by the Buddhist Compassion Relief Tzu Chi Foundation (佛教慈濟慈善事業基金會).

The event was organized to raise funds for the reconstruction of the 45 schools adopted by Tzu Chi following last year's devastating earthquake. The entire project will cost about NT$7 billion to complete but the group is still about NT$2 billion short.

Chen's "3-3-3" family welfare program promises to offer a preferential housing loan interest rate of 3 percent to first-time homeowners, to make health insurance free for children under the age of three, and to give monthly subsidies of NT$3,000 to those over 65 before the National Annuity Plan comes into effect.

At yesterday's party, Chen likened the operation of a government to running a company.

"Efficiency, opening more sources of income, and cutting down expenses are important," Chen said. "Things still can be done well with a limited amount of resources if expenses are cut first. A government doesn't have the right to increase taxes if it doesn't cut its expenses and become an efficient administration."

Chen stressed that the new government will take a different approach from the old government.

"Otherwise what's the difference between the new government and the old?" he said.