Luxury apartments in Taichung's Seventh Land Redevelopment District. Public appropriation and rezoning of land can create new public spaces, increase real estate values and bolster the tax base. (photo by Hsueh Chi-kuang)

Poverty brings the press for change, and the press for change brings solutions." People struggling to make ends meet aren't the only ones with money worries. Local governments, which in Taiwan have been burdened by debt for many years, also struggle with finances. In the six years since the Act Governing Local Tax Regulations took effect in 2002, what new taxes have local governments come up with? And how far are these local governments from "financial autonomy," a necessary component of local self-rule? Let's take a look.

On April 30, mayors, county commissioners, vice county commissioners, and finance bureau chiefs from Taiwan's 23 counties and municipalities gathered at the Legislative Yuan. Among them were Taipei mayor Hau Lung-bin, Taipei County commissioner Chou Hsi-wei and Chiayi mayor Huang Ming-hui. This impressive group of local government leaders had gathered for a discussion on draft amendments to the Law Governing the Allocation of Government Revenues and Expenditures.

The local government representatives at the meeting cried poor and argued that they should be allowed to levy a broader array of taxes. The central government, meanwhile, similarly pled that it lacked resources, explaining that increasing local government's share of centrally allocated tax revenues would simply shift local debt to the central government. Moreover, urban local governments staked out markedly different positions from rural ones. The meeting revealed virtually no common ground.