Ma and his running mate Vincent Siew, a former premier, said they will advocate the policy of “lighter tax with streamlined administration” by updating the tax system and ensuring equality in sharing the tax burden.

They said a family of four with a combined annual income of under NT$360,000 will not only be exempted from income tax, but will also be given a subsidy of NT$46,800 — equaling 13 percent of the income earned — a year.

The subsidies will be given to all households that earn less than NT$480,000 per year.

But the amount of subsidies will gradually decrease for those with incomes higher than NT$360,000 and below the ceiling of NT$480,000.

This means that those earning above NT$480,000 are not qualified for any subsidy.

Ma said such a practice, which has been used in the United States for many years, will encourage people to join the labor market by reducing their tax burden.

Ma and Siew also said they will implement the measure if they are elected in the presidential election set for March 22.

The government will earmark a fund of NT$25 billion to benefit about 900,000 families with a total of 3.2 million beneficiaries, they said.

They said the tax deduction of NT$78,000 for a salaried worker and the special deduction of NT$77,000 for a disabled person in a family will both be raised to NT$100,000.

The two will also change the current rules of allowing a deduction of a total of NT$25,000 for each household.

This will alleviate the financial burden for parents who want to provide higher education for their children.

If elected, they will allow a deduction of NT$25,000 for each individual as long as they still attend school.

The maximum exemption of inheritance tax will also be doubled to NT$26 million from the current NT$13 million, they said.

The Ma-Siew team said they plan to scrap the current policy of giving tax incentives to companies of designated business lines, especially the high-tech industries, as listed in the Statute for Industrial Upgrading.

The tax incentives should be offered based on “functional purposes” such as encouraging the promotion of energy efficiency as well as the development and supply of environmentally friendly energy.

Meanwhile, the ceiling rate of business income tax to be paid by enterprises will be lowered to 20 percent from the present level of 25 percent.

Some business executives said deletion of tax incentives offered by the Statute for Industrial Upgrading could dampen the investment willingness of some enterprises.

But business income tax cut should help offset the negative impact, they said.

They said they need to have more details about the tax plans presented by Ma and his running mate.

Meanwhile, presidential candidate Frank Hsieh of the Democratic Progressive Party stepped up the attack on Ma for holding a U.S. green card when he studied and worked in the U.S. decades earlier.

The assault was seen by political analysts as an attempt to brand Ma as a person “who does not love Taiwan.”

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