Showing posts with label taxes. Show all posts
Showing posts with label taxes. Show all posts

Monday, June 15, 2020

Foreign residents in Taiwan should get stimulus vouchers, too (and the government is specifically seeking to exclude blue collar foreign workers)

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I don't have a related picture so please enjoy this old gate

(Update) Thanks to a friend's helpful link, I'm able to include video evidence that not only do the stimulus vouchers not cover foreigners who aren't married to locals, but they specifically aimed to exclude foreign blue-collar workers (that is, the majority of the foreign community from Southeast Asia). It's in Mandarin, but watch at around the 1:04:25 mark, and you'll see that the reason given for not allowing all foreign taxpayers to get the vouchers is "因為我們有很多移工" - the rough but I think accurate translation being "because we have lots of migrant workers".

That's disgusting, and the government should honestly be ashamed. 


(Original post)

A few weeks ago, the government unveiled a plan to provide stimulus vouchers to jumpstart the economy as Taiwan copes (spectacularly well) with the CCP Virus. People with low incomes will be able to receive the vouchers free of charge, and wealthier citizens could pay NT$1000 for NT$3000 worth of vouchers. I'm not clear on the details, but there are also apparently specific voucher plans in the works for things like cultural activities, as well.

Here's the thing, as with the Ma-era stimulus plan in which citizens and those married to citizens received NT$3600 to bolster the economy, foreign residents with no local spouse are not eligible for any of these programs, either.

If you're wondering whether anyone's asked the government why they craft policies like this, the answer is yes. The response will sadden but not surprise you. From the link above:



When asked the reason for this policy, she [Su Wen-ling 蘇文玲 of the Ministry of Economic Affairs] said that the vouchers are "only meant for Taiwanese citizens," with the hope that they will spend more money on the economy.

This quite literally amounts to:

Q: "Why are foreign residents, who pay taxes just like Taiwanese citizens, not eligible for all of the benefits of those taxes?"

A: "Because they're not."



It was not only a bad answer, it was a non-answer, and Ms. Su should feel bad for giving it. She may as well have stuck out her tongue and blown a raspberry with lots of extra spit for emphasis.


The whole attitude is frankly ridiculous, for two reasons. I'll give you the less important one first: we pay taxes. It's also our tax money being spent on measures to improve the economy, and our money spent in Taiwan is just as good as the money spent by citizens.

If the purpose of this program is to help the economy, then more money being spent by more people is a good thing. You get less, uh, stimulation if you give out fewer vouchers, so why isn't every taxpayer eligible?

There's simply no reason to exclude us. Including all foreign residents (so that means not just the middle-class people like me, but also the far more sizable Southeast Asian workforce) wouldn't even amount to that much money when compared to the cost of the entire program. And, as any savvy business knows, giving out coupons entices most people to spend even more than they would have without the coupon. 


It's just bad policy, crafted for no reason, and "defended" with a joke of a non-answer.

That said, it's not like I need the stimulus money. I don't, and you probably don't either (though I suppose we could all benefit from it.) It's not really about the money - it's about being treated like a normal taxpayer, and about making better economic policy. Nobody's looking for a charity handout.

However, there's a more important reason why foreigners should be included.

Let me tell you about my community. We have a lot of elderly residents, which means there are a lot of care workers in the area, most of whom are from Indonesia and the Philippines. This means that my community has a higher-than-average concentration of shops that cater specifically to this community, at least by Taipei standards. here are three Indonesian markets within a 2-minute walk of my apartment.

They sell goods and provide shipping services that other foreign residents from Southeast Asia purchase and use (I also shop at these stores, both for ingredients and prepared food, which is generally excellent). I have never seen a Taiwanese person shopping in any of them - if any do, it's not common. 


What I'm trying to say is this: they are threads woven inextricably into the community life and economy of my neighborhood. They have value - providing needed goods, services and employment - and deserve the benefits of economic stimulus plans just as much as any other businesses frequented by Taiwanese.

But because the people who shop there won't get vouchers, and the people who get vouchers don't shop there, this entire sector of the economy will almost certainly see no benefit whatsoever. They bring so much value to this country, are owned by taxpayers and employ people who pay taxes, selling goods to people who pay taxes, but won't get the benefit of those taxes when the government feels the economy is lagging.

My neighborhood may be a little unique for Taipei, but the rest of Taiwan surely has areas where businesses such as these are a notable feature of the economy and streetscape.

I have to wonder, what other sectors of the economy that the folks at the Ministry of Economic Affairs have clearly not considered are going to be overlooked by this stimulus program?


I'm sorry, but that's not right, and someone really ought to tell Ms. Su and her colleagues, and demand a real answer.