Taiwanese government is proposing a new “Rich Man Tax” to be imposed on the nearly 10,000 richest persons of the island nation to ensure equal distribution of wealth. About 1.5% of the top most earning individuals or families with an income of over 10 million taiwanese dollars or 333,000 USD, will have to pay 45% tax, up five per cent from the current 40%, said the officials.
“We will raise taxes for the top and reduce taxes for low and modest income earners … which will definitely improve the income distribution,” finance minister Chang Sheng-ford told.
High earning businessmen like Terry Gou of Foxconn group and Morris Chang of Taiwan Semiconductor Manufacturing Company have welcomed the move, saying that now they will pay the money to the government spent otherwise on philanthropy.
Additional tax is also proposed on banks and insurers which will greatly improve the tax collections of the country. Tax incentives will be offered to salaried persons and the disabled. Average annual earnings of the bottom five per cent of Taiwan is 48,000 Taiwanese dollars, while the top most earning five per cent averages at 4.63 million taiwanese dollars.