Fiscal Policy

Due to the geographically difficult circumstances that Hualien has been in and it as a county that has tourism along with agriculture being the major economic industries, while covering the largest land area among all cities and counties, the living condition of Hualien residents is not too different from those of sub-islands in Taiwan.

The regional imbalances that Hualien has been encountering ranging from economy, transportation and social welfare are not any better than other localities. Hence, Bi-khim argues that basing the number of population as the only indicator for the allocation of public resources and tax revenues distribution is unfair and unreasonable at the first place.

Since the presence of regional inequality reveals the need for the government to reformulate a variety of existing finance policies and legislations, Bi-khim has sponsored bills that would help to resolve the issue. The proposal specifically includes the following areas of development as indicators for central budget division- elderly and child population, the average amount of disposable income of each household, the turnover of profit-seeking enterprises, production values of certain industries and existing critical infrastructures, etc. Also, in order to more effectively improve the overall development of Hualien and Taitung (台東), as well as the livelihood of ordinary people in these regions, a comprehensive policy should also address areas which encompass but are not limited to land resources, environmental conditions, the structural balance of rural and urban areas and industrial development from a long term perspective.

In addition to finance policies concerning the east coast residents, the government has made a proposal that introduces the idea of imposing taxes onto tourists and tour operators. Bi-khim strongly opposed a government intervention as such in that, given the current economic situation in Taiwan as well as the ongoing debt crisis around the world, it is believed that the tourism tax will most likely deter visitors from coming to the region and the possible money inflow. Instead, Bi-khim claims that businesses in Hualien and Taitung should be exempted from sales tax so the tourism sector can be further popularized by the increase in private spending in the region. Such an amendment plan has an overall positive impact on total tax revenues because the income tax and other taxes will increase and therefore help to reduce the unemployment rate significantly.

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