Activists upset over DPP support for reducing taxes

Tax reform activists yesterday condemned Minister of Finance Ho Chih-chin (何志欽) and a number of Democratic Progressive Party (DPP) lawmakers for a plan to repeal or lower inheritance and gift taxes, saying it would lead to a deterioration in wealth distribution.

"We urged the public not to vote for lawmakers [in the year-end legislative election] who give their support to the plan," activist Chien Hsi-chieh told a press conference yesterday.

In May 2005, Chien, leader of the disbanded Pan-purple Alliance, initiated a tax-boycott campaign to protest the current tax structure that the alliance considered unfair to salaried employees.

The boycott campaign was joined by 31 people, including DPP Legislator Wang Jung-chang (王榮璋), former policy advisor to the president Peter Huang (黃文雄) and Director of the Department of Journalism at National Chengchi University Feng Chien-san (馮建三).

Recently DPP lawmakers Hsueh Ling (薛凌) and Hou Shui-sheng (侯水盛), among others, came forward in favor of the finance ministry's plan to repeal or lower inheritance and gift taxes.

The ministry said on March 21 that the maximum rates of inheritance and gift taxes would be reduced from 50 percent to 25 percent -- part of a series of tax cut proposal the ministry is deliberating.

The lawmakers said the reduction in inheritance and gift taxes will promote the inflow of capital because it will dissuade the wealthy from remitting capital abroad to avoid taxation.

"The argument is ridiculous because wealthy people have lots of ways to evade taxation," Chien said.

"The government won't be able to collect more taxation because of the reduction. Instead, it's estimated that the nation's tax revenue will decrease by NT$30 billion [US$906 million] a year," he added.

Chien said the public would have every right to resist taxation if the tax reduction plan is passed.