Premier Cho Jung-tai Rejects Mandating Cash Handouts: 'A Net Loss for the Nation'
Premier Cho Jung-tai stated today that mandating cash handouts from tax surpluses would lead to increased debt and hinder major infrastructure projects, making it a 'net loss' for the country's development.
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- 📰 Published: April 28, 2026 at 15:38
- 🔍 Collected: April 28, 2026 at 16:02 (23 min after Published)
- 🤖 AI Analyzed: April 28, 2026 at 16:10 (7 min after Collected)
Taipei, April 28 (CNA) — Premier Cho Jung-tai responded today to opposition proposals to mandate 'cash handouts' from tax surpluses, stating that surpluses should be used for welfare and construction in the following fiscal year rather than being dispersed as cash. He noted that past handouts have pushed the government's borrowing over NT$400 billion this year, which he described as a 'net loss for the nation.'
Cho led cabinet officials to the Legislative Yuan today for a policy report and interpellation.
Democratic Progressive Party (DPP) Legislator Wu Ping-jui questioned the opposition's proposal, which would require tax surpluses exceeding 15% of the budget to be directly returned to citizens. Wu argued this is a misconception, as giving money to everyone, including infants, is not truly 'returning tax to the people' and is instead a political maneuver.
Cho replied that if actual tax revenue exceeds the budget, it forms a surplus, the use of which is regulated and prioritized for debt repayment. Furthermore, significant public works, such as planned but not yet approved rail projects exceeding NT$600 billion, would lack funding if the money is all given away.
He added that defense and social welfare also require sufficient annual budgets. Surpluses can be used to increase these budgets in the next year. 'The government must direct these funds toward directions that benefit the people and industries,' Cho said.
Wu noted that with elections coming up on November 28, the opposition hopes the Executive Yuan will oppose the measure so they can campaign against the DPP.
Cho pointed out that this year's borrowing is nearly NT$300 billion, or over NT$400 billion including special budgets, partly due to past cash handouts. 'Giving out a lump sum of cash and then borrowing for public works is a net loss for the nation,' he said. While citizens get some cash, national development will stagnate. (Editor: Wan Shuzhang) 1150428
Cho led cabinet officials to the Legislative Yuan today for a policy report and interpellation.
Democratic Progressive Party (DPP) Legislator Wu Ping-jui questioned the opposition's proposal, which would require tax surpluses exceeding 15% of the budget to be directly returned to citizens. Wu argued this is a misconception, as giving money to everyone, including infants, is not truly 'returning tax to the people' and is instead a political maneuver.
Cho replied that if actual tax revenue exceeds the budget, it forms a surplus, the use of which is regulated and prioritized for debt repayment. Furthermore, significant public works, such as planned but not yet approved rail projects exceeding NT$600 billion, would lack funding if the money is all given away.
He added that defense and social welfare also require sufficient annual budgets. Surpluses can be used to increase these budgets in the next year. 'The government must direct these funds toward directions that benefit the people and industries,' Cho said.
Wu noted that with elections coming up on November 28, the opposition hopes the Executive Yuan will oppose the measure so they can campaign against the DPP.
Cho pointed out that this year's borrowing is nearly NT$300 billion, or over NT$400 billion including special budgets, partly due to past cash handouts. 'Giving out a lump sum of cash and then borrowing for public works is a net loss for the nation,' he said. While citizens get some cash, national development will stagnate. (Editor: Wan Shuzhang) 1150428