Just 11 days into his second term, President Ma Ying-jeou (馬英九) is facing a new crisis as doubts and questions about the legitimacy of his administration and his credibility in fulfilling his campaign promises intensify.
On Monday, the Chinese Nationalist Party (KMT) legislative caucus rebelled against the Cabinet’s securities capital gains tax bill, a key measure of the president’s promise to promote social justice. This was followed by Minister of Finance Christina Liu (劉憶如) resigning after a little more than three months in office, because of disagreements with the KMT caucus’ version of the proposed tax. Liu said the party’s version did not meet the government’s ability-to-pay principle and would not force many of the nation’s top earners who derive a large portion of their income from securities investments to pay more tax.
Liu’s abrupt move showed her determination to take responsibility for the government’s earlier promise to introduce the nation’s first securities capital gains tax in more than two decades, as the twin problems of a widening wealth gap and increasing government debt get worse. Although Liu’s resignation is her own business, as the public has seen numerous officials come and go over the years, the social and political implications that her action would bring to Ma and the KMT administration over the next four years is worth scrutinizing.
First, Liu’s resignation opens a new chapter in the crisis facing the Ma administration as the president struggles to recover from record-low approval ratings. The controversial tax proposal that has sparked strong opposition from the business sector and legislators across party lines since late March, culminating in Liu’s resignation, highlights the Ma administration’s long-standing weaknesses in decisionmaking and crisis management.
It also suggests poor communication between the Presidential Office, the Cabinet and KMT lawmakers, which may develop into a crisis of confidence or mistrust between the administration and party lawmakers. This will only heighten doubts about Ma’s leadership if the problems are not fixed in time.
Second, disagreements over the tax issue also seem to exist within the Executive Yuan, with most other ministers attempting to keep a distance from the Ministry of Finance’s tax plan and Liu becoming increasingly isolated. This will make it even more difficult to convince lawmakers and the public on the urgency of the government’s tax reform efforts.
The fact is the nation’s long-term development would inevitably be affected by the widening gap in income between rich and poor. If the finance ministry needs to take harsh measures to narrow the wealth gap, it would need the support of other government agencies to tackle the problem. As such, if the administrative team continues to fall to pieces, Liu’s resignation will not be an individual case and the only question is who will be the next to bow out.
Third, the KMT caucus’ version of the tax bill might have the least impact on the capital markets, including the stock market, but it is too watered down to achieve real tax reform compared with other proposals tabled by the Executive Yuan and opposition parties.
If the government aims to push through the KMT caucus’ proposal in the legislature, people who demand fairer taxation and equitable wealth distribution will be very disappointed. It will invite speculation about the government compromising with vested interests and cast doubt on policymakers’ other proposed reform measures, including a capital gains tax on housing and land investments.
Ma and his administration have hurt public confidence with their roughshod introduction of the tax plan and mishandling of the disputes over the past two months. However, if they cannot offer a better alternative than the blunt, poorly designed tax bill proposed by the KMT caucus, they will lose all their credibility and legitimacy.
President William Lai (賴清德) attended a dinner held by the American Israel Public Affairs Committee (AIPAC) when representatives from the group visited Taiwan in October. In a speech at the event, Lai highlighted similarities in the geopolitical challenges faced by Israel and Taiwan, saying that the two countries “stand on the front line against authoritarianism.” Lai noted how Taiwan had “immediately condemned” the Oct. 7, 2023, attack on Israel by Hamas and had provided humanitarian aid. Lai was heavily criticized from some quarters for standing with AIPAC and Israel. On Nov. 4, the Taipei Times published an opinion article (“Speak out on the
Eighty-seven percent of Taiwan’s energy supply this year came from burning fossil fuels, with more than 47 percent of that from gas-fired power generation. The figures attracted international attention since they were in October published in a Reuters report, which highlighted the fragility and structural challenges of Taiwan’s energy sector, accumulated through long-standing policy choices. The nation’s overreliance on natural gas is proving unstable and inadequate. The rising use of natural gas does not project an image of a Taiwan committed to a green energy transition; rather, it seems that Taiwan is attempting to patch up structural gaps in lieu of
News about expanding security cooperation between Israel and Taiwan, including the visits of Deputy Minister of National Defense Po Horng-huei (柏鴻輝) in September and Deputy Minister of Foreign Affairs Francois Wu (吳志中) this month, as well as growing ties in areas such as missile defense and cybersecurity, should not be viewed as isolated events. The emphasis on missile defense, including Taiwan’s newly introduced T-Dome project, is simply the most visible sign of a deeper trend that has been taking shape quietly over the past two to three years. Taipei is seeking to expand security and defense cooperation with Israel, something officials
“Can you tell me where the time and motivation will come from to get students to improve their English proficiency in four years of university?” The teacher’s question — not accusatory, just slightly exasperated — was directed at the panelists at the end of a recent conference on English language learning at Taiwanese universities. Perhaps thankfully for the professors on stage, her question was too big for the five minutes remaining. However, it hung over the venue like an ominous cloud on an otherwise sunny-skies day of research into English as a medium of instruction and the government’s Bilingual Nation 2030
RSS