The Effects of Fiscal Policy on Lifetime Net Tax Rate in Taiwan

• Main Authors: Kuei-Yin Liu, 劉桂吟
• Other Authors: none
• Format: Others
• Language: zh-TW
• Published: 2003
• Online Access: http://ndltd.ncl.edu.tw/handle/48940834283682645403

碩士 === 逢甲大學 === 會計與財稅所 === 91 === Since 1989, Taiwan government suffers continuously budget deficit that resulted in tremendous debt balance. In 2001, more than 3 trillion NT dollars debt balance for Taiwan government reaches the historically high record. Among the reasons that caused the budget deficit, sharply increasing in social welfare expenditure and stable decreasing growth in tax revenues are two major concerns. Further tax reforms by the Fiscal Reform Committee are called to balance the budget deficit within 5 to 10 years. However, how these fiscal policies affect the current and future generation fiscal burden are still lack of further evaluation. Based on the 2001 fiscal data, the purpose of this study is to estimate Taiwan total, male, and female average generational accounts and lifetime net tax rates according to the current fiscal policies. The basic results show the total average fiscal burden and lifetime net tax rate of current generation are 821 thousand NT dollars and 13.30 %, respectively, whereas male averages are higher than female averages. The future generation will bear a 3.44 times of fiscal burden of the current generation or a 3.39 times of lifetime net tax rate of the current generation. The reason for this significantly intergenerational fiscal imbalance could be due to the large cumulated debt balance. The simulation results show that the insurance rate adjustment policy of National Health Insurance will decrease the net tax rate of current generation and increase the rate of future generation. The proposed National Pension policies and the tax reform policies will reduce the imbalance rate of intergenerational lifetime net tax rate.