Foxconn boss calls for tax on Taiwan's wealthiest 300

Foxconn boss Terry Gou has called on Taiwan’s rich elite to contribute more to taxes, saying that the global economic storm is “worse than expected”.

Gou, himself one of the richest men in Taiwan, has proposed that the government should request more from the nation’s wealthiest 300 people, in place of a capital gains tax.

According to Gou increasing taxes for the country’s richest people would mean a fairer distribution of wealth, giving a boost of $601.3 million per year in tax, more than would be made available through capital gains tax.

Gou said that a capital gains tax would penalise smaller businesses which have just completed an initial public offering, for example, and would have a stifling effect on the economy.

He told a press conference that the unrest caused by “bickering” over capital gains tax needed to stop, as the “global economic storm” is is worse than expected, writes the Taipei Times. The country now needs to focus on stabilising its own economy, and unfair distribution is not helping.

Taiwan’s government has recently been acting to shore up its defences against the global economic situation, with the the Eurozone crisis threatening to hit hard.

The country’s manufacturing industry, which features chip foundry giant TSMC, has seen declines recently and the Ministry of Economic Affairs has stepped in to offer financial support to firms in certain instances.

With the Eurozone situation still precarious the effects can quickly be felt further up the supply chain.

The government will decide on capital gains tax on Monday, and has indicated they will take Gou’s views into consideration.