Financial Secretary John Tsang has warned that our massive financial reserves will run out one day, leading to the end of our low-tax haven. Combined with decreasing government income, slowing economic growth due to an aging population, and increased welfare costs for the elderly, the government will eventually need to increase taxes or issue bonds to keep up with spending.
Although Tsang says that this will not happen for quite some time yet, the public should know now to prepare for this as early as possible. Proposed solutions are to have better policies that help the middle class and those at the grassroots, and to create affordable housing to increase birth rates and maintain a vibrant economy.
Source: The Standard
Photo: Jo Schmaltz, Flickr
