Taiwan political parties propose cash handouts and tax reforms

As the 11th Legislative Yuan prepares to convene its sixth session on September 29, major political parties in Taiwan have proposed competing legislative priorities focused on economic relief and social welfare.

The Kuomintang (KMT) caucus, led by Fu Kun-chi, is advocating for a “return taxes to the people” policy, proposing a universal cash handout of 20,000 TWD per person. This follows President Lai Ching-te’s previous plan to allocate 235.7 billion TWD in the central government budget to provide a 10,000 TWD handout.

The Democratic Progressive Party (DPP) has responded by emphasizing that the government must prioritize essential investments and infrastructure, such as defense, civil servant salary adjustments, and utility subsidies, before distributing surplus funds. The DPP maintains that while economic dividends should be shared, fiscal responsibility regarding necessary state functions must come first.

Meanwhile, the Taiwan People's Party (TPP) has outlined a four-pillar agenda: livelihood, transportation, fertility, and dignity. Their proposals include increasing tax deductions for housing rent and long-term care, raising elderly farmer subsidies, and amending traffic laws to ensure fine revenues are used specifically for road safety. They also aim to improve parental leave and workplace flexibility to support childbirth rates.