Blog Assignment

Friday, March 15, 2019

Week 9: Taiwan: Thousands of 'yellow vest' protesters call for tax reform


Summary:
France's 'yellow vest' movement, which began in November of last year, is currently resonating with people around the world. Nations like the Netherlands, Egypt, Spain, Belguim, Israel, and Lebanon have developed their own versions of this protest. Inspired by French protesters' success, several thousand Taiwanese demonstrators marched on their government's Ministry of Finance at least three times this past December as a show of frustration towards tax rates and collection practices.

Turnout at the first December protest

Students and young workers, like Joanna Tai, say that high taxes have crippled Taiwanese entrepreneurship and are unfair compared to those of mainland China and Hong Kong. Other protesters claim that they've been mistakenly overtaxed, unlawfully coerced by tax collectors, and generally burdened by high tax rates. A natural extension of the peoples' dissatisfaction with Taiwanese taxation policy was the 2016 formation of the Tax and Legal Reform League, which is the group responsible for organizing the December protests. They advocate for the rights of those facing financial hardships, as well as for tax law transparency. 

Image result for taiwanese yellow vest protests
March along Taiwanese road

In response to protests and Reform League statements stating the contrary, Taiwan's Finance Ministry has chosen to maintain that their taxation systems are fair, and that legal solutions to the protesters' complaints do, in fact, exist. Officially, those who earn less than 2.42 million NTD (New Taiwan Dollars) annually only pay a 20 percent (or lower) income tax; additionally, part of current president Tsai Ing-Wen's platform is devoted to improvement of Taiwanese economic welfare and wages. According to the Finance Ministry, the movement for lower taxes isn't new. Regardless of this conflict's date of origin, people are encouraged by the success of international dissent and will most likely continue to fight for their economic well-being.

Reaction:
Even at the height of the French yellow vest movement, I didn't think about it having such a global effect-- the protests were so often categorized and discussed as a strictly French issue. As someone who is most often a consumer of internationally "newsworthy" events through the media rather than one who experiences them, it is incredibly easy to be distanced from stories like this, which aren't as "life-or-death" or sensationalized by the media but still have a strong impact on human lives. I think that the disparity between protesters' experience under certain government policies and the government's generally positive views towards those same policies is a dangerous one. Governments are meant to work for the people and their welfare, and an inability to accept and adapt to criticism is a fatal flaw. I worry that the Taiwanese Finance Ministry's defensiveness in regards to this issue will lead to more tensions rather than improvements.

Connection: 
Though this movement is not one of political independence, per se, connections may be drawn between the current spread of protests and the post-WW2/Cold War spread of pro-democracy ideals and uprisings. In the late 1940s, for example, Japan experienced a move to independence from its previous state of European colonization. At the same time and soon after, nationalists from Indonesia and (formerly) French Indochina fought for their independence from Europe as well. Following this trend, though several years later, the people of the Republic of Congo also campaigned for liberty from Belgian rule. Belgium-- irony entirely unintended-- as well as many other countries are now following in France's footsteps, just as Congo and other occupied territories followed Japan's lead.

Questions:
1. Should the Taiwanese government be showing more sympathy for the plight of the protesters? Who is in the right, if anyone?

2. What kind of changes could the government make to resolve this issue?

3. Why do you think the yellow vest imagery aspect of these protests has been so widely adopted?

Additional Sources:

12 comments:

  1. I agree with the fact that many people around the world don't see the impacts these protests have because they extreme and violent. But it also shows how you can get a reaction through peaceful movements. Although the Taiwanese govt. didn't necessarily change much, they recognized the protestors and gave a reaction. This is just one of the many examples of citizens using their right of freedom of speech in hope of change. It is also shown that, like how nationalism was spread as well as the idea of protesting against ones govt., the "yellow vest" protests started in France and have spread to other countries, again that hope for change. The Taiwanese government did not change their taxes, but still gave their citizens recognition and reassurance. Although, many citizens are still probably very unhappy, the govt, acknowledged them and gave a response. If protests continue however, I don't think it would be a bad idea for the government to at least revisit and rethink their taxing system and the concerns of their citizens.

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  2. I think that the Taiwanese government should be showing more sympathy to the protestors. The original article states that people have been sent tax bills "sent in error" or "asking for too much tax." Given this knowledge, it appears that the Taiwanese government is in the wrong. According to KPMG, Taiwan ranks 33rd highest tax worldwide, while the US ranks 39th. Given that the Taiwanese annual minimum wage, NT$23,100 or around US$750, is lower than the US annual minimum wage, around US$15,000, I think that the Taiwanese government should either increase the minimum wage or decrease taxes. ( https://www.latimes.com/world/asia/la-fg-taiwan-yellow-vests-20181227-story.html )

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    1. I agree with Kayla in that the government needs to start making some sort of change in regards to this tax problem. She provided sufficient evidence that Taiwan is in need of some reform as well as the article itself proves that the government seems to be mostly the ones to blame. Even if tax rates were fair in relation to the average income in Taiwan, the fact that the government is incorrectly taxing its citizens and refusing to learn from their wrong-doings is proof of a deeper corruption the government must fix along with taxing. I also feel that it is especially essential to the country’s future for the government to, as Kayla stated, indulge the people’s request as without lessening the tax rate the younger generation- the future of Taiwan- will not be able to find a job and give back to their country, as proven by this article. Without a place for younger generations in Taiwan’s “entry-level jobs” the country can count on facing much bigger issues than just their people’s discontent as their will be no bright future promised by the hopeful youth.

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  3. In regards to the yellow vest imagery, the brightness of the color yellow, especially on crowds of people, is very hard to miss. This speaks volumes in pictures, especially through social media, which is used worldwide to spread news about protests such as this. According to https://www.nytimes.com/2018/12/04/fashion/yellow-vests-france-protest-fashion.html, the yellow vests are associated with industries in the working class, specifically in areas of construction. A similar vest was worn by French motorists in 2008 when a law required car owners to keep a bright yellow best in their cars in case of any issues regarding their vehicles. Therefore, the French see this vest as a distress signal, which is appropriate for this protest. This yellow vest movement brings a sense of unity and pride to the cause, which makes it so widely adopted in other countries in their own protests, such as Taiwan, as mentioned in the article.

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    1. I'm really interested in the ways that this response goes in depth into the origin and uses of the yellow vest in a protest context. I totally agree that it is both visual and symbolic in nature, which definitely heightens its strength. Almost nationalist ideals like pride and unity, which you describe later in your comment, even tie into the connection I made with the post-WW2/Cold War era. As we've seen throughout history, nationalism is one of the most prevalent bringers of change; it makes sense that an item representative of its common traits could be so effective. I had no idea that the vest actually had an earlier (albeit still French) origin, but I think it's so fitting that the French yellow vest imagery has this extra layer of historical context and meaning.

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  4. If so many people are protesting against the taxes, then I believe that it is a sign that the Taiwanese government should be trying to improve their system in some way. I feel that in a way, both sides can be blamed for being at fault. According to Britannica, https://www.britannica.com/topic/taxation taxes are used to fund the government, but excessive taxing can create anger and unhappiness among the public. Lowering or finding a better balance between funding government interests and keeping citizens happy can help to solve these riots. But according to the article, the Taiwanese government is lacking in transparency which is worrying their citizens. I feel that being more open and transparent can help to resolve this issue.
    The image of a yellow vest catches a lot of attention, which might be a reason why the yellow best aspect of the protests are such a large aspect of the protests. Their catchy and bold color scheme makes it hard for someone to forget, which might inspire others to try to contribute as well.

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  5. I think that if such a large amount of people are complaining about taxes there much be something wrong with it. But I also do think that it is good that it isn’t going ignored by the government. Though the government may not be doing anything for this problem, but recognizing it shows that they may do something about it. As stated in the original article, they say that they have been mistakenly overtaxed or unlawfully coerced by tax officers. So these problems need to be taken care of, being overtaxed is something that is very serious. I also think that these problems should be taken of. Also, the government showing a reaction to the people also shows that they are not oppressed and that the Taiwanese people are able to exercise the right to freedom and also that there is room for change. I think that since many are very unhappy with it and that protests will continue, maybe the government may do something about it, just like what happened in France.

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  6. To answer the third question, according to Aljazeera's coverage of the original protest in France ( https://www.aljazeera.com/news/2018/12/happening-france-yellow-vest-movement-explained-181204153014250.html ), the French government requires all motorists carry these yellow safety vests. The protesters are wearing the vests to emphasize the unfair amount of government control on motorists (they were originally protesting high fuel prices). By donning the yellow vests as a symbol of the worldwide movement, the protesters outside of France are also emphasizing the amount of unfair government control present in their wages and taxes that prevents them from achieving their economic goals. Because the protests are international and on a huge scale, the Taiwanese government should definitely heed the protesters' warnings and begin rethinking their taxes and minimum wage requirements. According to the New York Times (https://www.nytimes.com/2019/02/10/world/europe/france-yellow-vest-protests.html), about 51,000 people showed up initially to the French protest, and if these worldwide protests are even approaching or exceeding that turnout rate, the governments in question are going to be under a lot of heat pretty soon. As much as any government likes to pretend that they are all-powerful, at some point they're going to have to answer to the public.

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  7. I agree with many others that something must obviously be wrong if the majority of the population is protesting against the tax reforms. After comparing Taiwan income and corporate tax rates with other countries, I concluded that although Taiwan’s taxation is not significantly as high as France, Taiwan is still listed as the 28th country in the world highest with the highest tax rate of 40%, compared to a global average of 29%. (https://www.theglobaleconomy.com/rankings/personal_income_tax_rate/) However, Taiwan is not far ahead of the US, which has a rate of 37% in 38th place. With this information, I feel that Taiwan does have a high personal income tax rate, but this is very common in many countries and the Taiwanese may be acting on very extreme measures to address this. Alternately, this problem should be addressed as an issue worldwide as a whole, instead of each country individually rioting for tax reforms. Lastly, yellow is a bright color that would stand out in protests. Also, a yellow vest could resemble the entire working class. They are inexpensive and convenient to wear over any work uniform, so they could be a symbol for the protestors to bond through.

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  8. I think that it is great that the Taiwanese people are protesting their concerns about taxing. Like many others have mentioned, there is obviously something wrong with the current system if so many people are coming together to protest. I think that the yellow used in the protest is so popular because it is bright and catches people's attention, raising more awareness to the issue. According to Taiwan Business Topics, the personal income tax was recently lowered from 45% to 40% in Taiwan. It has been lowered but this is still an extremely expensive tax for the people of Taiwan. It is significantly higher than other neighboring cities like Singapore and Hong Kong. In Singapore, the income tax rate is 22% and in Hong Kong it is only 17%. I think that this justifies their protest because so many people are paying the government more than they can afford. In fact, 79% of the government's revenue is from taxes.
    https://topics.amcham.com.tw/2018/08/a-taxing-problem-taiwans-comparatively-high-personal-income-tax-rates/

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  9. I think that Taiwan should sympathize with people because they are dealing with people’s livelihoods. Taxing on one’s salary or business will, in fact, cause people to outrage or protest. If anybody is right, it should be the citizens because they are the ones at risk. Take a survey of the population and adjust the tax rate accordingly. But also don’t lower the rate so low that the government doesn’t have any money left. I think that the yellow vest movement has been so widely adopted because most governments have a tax problem and the citizens of each country want to change it one way or another.

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  10. I think the Taiwanese government should show more sympathy towards the citizens. Especially due to their extremely low minimum wage. According to https://www.minimum-wage.org/international/taiwan, “Taiwan's minimum wage is NT21,009 per month ($654) or NT$133 per hour ($4.14)". Taiwan's minimum wage was last changed in 1-Jan-17.” Compared to California’s minimum wage of around 11.00 USD per hour, this stark contrast demonstrates that the citizens are right to protest. The yellow vest aspect adds to the strength of the protest, causing the citizens to stand out. The Taiwanese government needs either decrease the tax rates or raise minimum wage, otherwise tensions might continue.

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