Taiwan's Wealth Gap Hits Record 104 Times in 2016|2016所得調查 貧富差距達104倍

Taiwan's wealth gap continues to expand, with the gap in earnings between the top 5 percent and bottom 5 percent now sitting at 104 times according to the latest statistics. This has reached a historical record high. Scholars say the main culprit for the speedy growth to the wealth gap, lies in tax inequality.


Social welfare groups treat thousands of homeless people to a holiday meal on Ketagalan Boulevard every year. According to Ministry of Health and Welfare statistics, Taiwan has 250,000 mid-to-low and low-income households. The wealth gap, meanwhile, continues to grow. Tax statistics from 2016 show the earnings discrepancy between the top 5 and bottom 5 percent of taxpayers reached a historic high of 104 times. The top 5 percent enjoyed average annual earnings of NT$4.68 million, compared to just NT$45,000 for the bottom 5 percent.

Current statistics are for comprehensive income tax totals only. Uniform invoice and lottery winnings or separate integrated housing taxation income are not included in comprehensive income tax totals.

The Ministry of Finance says the figures are for reference only and the Directorate-General of Budget, Accounting and Statistics' average family income and expenditure per household survey paints a more accurate picture. The Tsai administration has tried to narrow the wealth gap with transfer payments and tax reforms, but analysts say the reforms are completely useless and in fact are responsible for accelerating wealth inequality in Taiwan.

You can't escape a single cent of tax on wage income. In contrast, there is very little tax on business income and capital gains.

In response, the ministry says households in the eighth to 13th tax categories are getting richer, which shows the middle class is accumulating wealth. However, experts say the wealth gap has no chance of shrinking until the government implements a capital gains tax and lowers taxes on wage income.