Wednesday, July 18, 2007

Poor Hong Kong? Rich Hong Kong?

It was reported in the newspapers yesterday that Hong Kong is going to have a big budget surplus. Various experts are saying that it will be a sustained surplus, and are proposing to cut profit taxes, income taxes, etc.

I distinctly remember that only 2 or 3 years ago, experts (perhaps even the same ones who are talking now) were saying that the budget deficit then was structural, that the government must introduce new taxes to broaden the tax base, etc.

Who are correct? Or when are they correct? If the experts 2 years ago were correct, then they are being reckless now. If they are correct now, then they were being paranoid before. Do they even know who are right and who are wrong?

By the way, don't you think it looks like a picture of Gothem City?

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