Breaking News, World News and Taiwan News.

Updated Friday, October 9, 2009 9:16 am TWN, The China Post news staff

Sponsors
▪	Find great real time deals on China Flights. Book flights to China or China domestic flights 24/7.
▪	Buy china wholesale products from reliable chinese wholesalers on DHgate.com!
▪	Save 75% for all hotels in Shanghai, Beijing and whole China. Lowest rates for Flights in China.
▪	Get the best deals for Guangzhou Hotels or choose from more than 10,000 hotels in 499 Chinese cities.

Retired officials should not get double incomes anymore

The scheme was introduced decades ago when salaries for government employees were low, and when interest rates were high. The government reasoned that the benefits were needed to make up for their low salaries.

But now government employees' salaries are much higher, and interest rates are close to nothing.

The high interest rate for the pension savings were then meant to be a form of allowance for government retirees, but it is now a form of social inequality supported by the money from unwilling taxpayers.

This is not the only controversy generated by outdated laws. The same line of thinking also saw the government exempt teachers, and military personnel from paying income taxes in order to make up for their low salaries. And they still do not need to do so despite talks of canceling the benefits for many years.

The delay in making changes is understandable, but not acceptable. Anyone who has the power to make the changes is a potential beneficiary of the outdated laws.

The premier, ministers, and lawmakers could all retire, take up positions at government-invested companies or groups, and receive double incomes, plus the special interest rate for their pension savings.

They are reluctant to cancel the income tax exemption for teachers and military personnel because they form a large group of voters who can make a difference in key elections. Politicians are afraid that these voters could vote out a political party or any individual lawmaker who dares to deny them the tax exemption.

The premier has now promised to get rid of the fat cats who receive double incomes after retirement.

But there is a dispute over the definitions of such fat cats and government-invested companies.

The Legislature's budget center has estimated the number at about 40, but the opposition Democratic Progressive Party has claimed that the number is as high as 236.

The DPP has pointed out that there is no existing law forbidding fat cats from receiving double incomes working in companies or organizations with less than 50 percent government investment or funding.

The lack of a law has undermined the Legislature's previous resolutions demanding that these retirees give up their present salaries, according to the DPP.

The government certainly needs to make a new law to address this.

1|2