Terry Guo Proposes to Levy Tax on Rich Persons
Jun 08, 2012
In coping with the dispute over stock transaction gains tax, Terry Guo, chairman of Hon Hai Group, proposed yesterday (June 6) to levy "distribution justice tax" on the nation's 300 richest persons, as a substitute for the stock transaction gains tax. Guo said that the government can collect NT$18 billion of "distribution justice tax" a year, even higher than the estimated income of NT$10 billion from stock transaction gains tax.
Guo noted that "the nation is facing an economic storm, at a scale much larger than the imagination of most people." He urged other rich persons to take part in the significant proposal, so as to end the controversy over fairness and justice triggered by stock transaction gains tax and enable the nation to refocus its effort on economic development.
Guo suggested the government to make rankings for the nation's rich persons and levy NT$10 billion of distribution justice tax from the persons on the top-100 list, NT$5 billion from persons ranking 101st to 200th place, and NT$3 billion from 201st to 300th place.
The proposed tax complies with the principle of "tax levy based on capacity," according to Guo. The government can set a period for the tax, say, 20 years, and terminate the tax levy when the economy recovers.
Guo said that he believed 99.9% of rich persons would agree with his proposal and the NT$18 billion of distribution justice tax can be collected.
Guo noted that countries around the world are striving to develop economy but Taiwan is still engaged in the controversy over distribution justice. Over the past two months, the controversy has wasted more than NT$100 billion of government resources, according to Guo. "I hope that the rich-person tax can end the dispute over stock transaction gains tax as early as possible," said Guo.
source & copyright: CENS