Taiwanese President Tsai Ing-wen announced that next year a cash gift of 10,000 New Taiwan Dollars (NTD) will be distributed to all citizens to share in the economic growth. Chairman of Taiwan’s Wealth Media, Xie Jinhe, praised the ruling party for taking the lead and highlighted the strong support provided by impressive corporate, income, and securities transaction taxes.
President Tsai stated on the 17th that the central government’s budget for the fiscal year 116 (2027) will increase by 235.7 billion NTD under the condition of a balanced budget with no new debt, with the additional funds earmarked for the 10,000 NTD cash distribution per person, promoting the concept of “AI dividends, shared by all.” Additionally, next year’s overall national defense budget is expected to surpass 1.1225 trillion NTD for the first time.
Xie Jinhe, in a Facebook post titled “The Confidence behind Sharing AI Dividends with the Nation,” pointed out that President Tsai’s announcement of the 10,000 NTD cash gift next year stems from a proposal by the opposition party last year. The swift response from the ruling party surprised the opposition, with Taipei Mayor Jiang Wan’an calling for an increase to 20,000 NTD.
Regarding the nationwide cash distribution policy, he explained that while the ruling party took the initiative this time, the opposition can also make additional proposals. For example, if a city mayor calls for 20,000 NTD, the central government may request local governments to add another 10,000 NTD. President Tsai’s proactive approach indicates a strong position.
Xie Jinhe analyzed that in 2025, the total tax revenue for the central government was 3.7879 trillion NTD. Among that, corporate income tax collected 1.1482 trillion NTD, followed by 873.7 billion NTD from individual income tax, 615.9 billion NTD from business tax, and 292.8 billion NTD from securities transaction tax, constituting the major sources of revenue.
He further elaborated on the income tax system, highlighting that 3.165 million people in Taiwan are exempt from income tax, accounting for 45.3% of the population, while 2.65 million people are taxed at a 5% rate, contributing 17 billion NTD. The highest tax burden falls on 69,000 individuals taxed at a 40% rate, who paid 704.7 billion NTD, comprising 80.7% of the total income tax revenue. Essentially, the top 1% of taxpayers subject to the highest tax rate of 40% shoulder 80.7% of the tax burden.
Xie Jinhe indicated that the combined profits of all listed companies may exceed 7 trillion NTD, with projected increases in corporate income tax and individual income tax. Government tax revenue for next year is estimated to reach over 4.5 trillion NTD.
Moreover, he mentioned a secret weapon the government holds – a potential doubling of securities transaction tax revenue this year. With an average daily trading volume of 1 trillion NTD over 243 trading days, the government could collect 549.2 billion NTD. If the volume reaches 1.5 trillion NTD or 2 trillion NTD daily, the tax revenue could increase to 823.8 billion NTD or 1.0984 trillion NTD, respectively.
President Tsai’s announcement of a 10,000 NTD cash gift next year is supported by Taiwan’s impressive economic growth rate of 11.05%. Xie Jinhe emphasized that the government sharing the securities transaction tax revenue with the public is a welcomed initiative.
In addition, Professor of East Asian Studies at National Taiwan Normal University and political commentator, Fan Shiping, compared the economic conditions between Taiwan and mainland China in a program hosted by Li Zhenghao. He pointed out that while the Chinese economy lags, the Taiwanese people can enjoy the fruits of economic growth, leading to admiration from the Chinese population towards Taiwanese prosperity.