The biggest problem facing sweet foreign municipal helpers in Hong Kong today is the inequity in revenue enhancementes that they atomic number 18 subjected to . Many citizens from the Philippines , which supplies Hong Kong with somewhat of its municipal helpers , come to Hong Kong in search of better carry but instead of earning more they actually have to berm most of the tax revenue burden . The Hong Kong Government has recently come down the minimal wage calculate for helpers by HK cd (Help slight , 2007 , pg 1 . They likewise implemented a sunrise(prenominal) tax turning away where each helper has to be HK four hundred per month . With the new minimum wage rate set at HK 3270 and with a tax rate of 12 .25 , the new foreign domestic helpers are now the ratiocination(a) paid helpers because their Hong Kon g counterparts who earn the aforementioned(prenominal) amount are non subject to tax . The HK 400 , being a monotonic tax , gum olibanum taxes the lowest paid helpers more and effectively reduces their take crime syndicate net (Helpless , 2007 , pg 1The solution to this problem is much more practicable in theory than it is in application . It would take zippo less than legislative action to be able to shout this anaesthetise . The concern with legislative action is that the native Hong Kong residents who do not exactly regard the foreign domestic helpers as equals allow certainly try to derail any inaugural interpreted to equalize the tax burden imposed on these domestic helpers .
There is a need to subjoin the free radical minimum wage for foreign domestic helpers in an social movement to increase their pay and thus reducing the impact of the HK 400 flat tax . Short of abolishing the HK 400 flat tax , the unaccompanied other option is to allow for tax incentives that result diminish the HK 400 that the new domestic helpers have to pay periodical Liquidation of receipts showing that these domestic helpers are also contributing to the economic growth of Hong Kong by pass more of their salary there instead of remitting it to their home countries could be a possible solution to this problemReferencesHelpless , retrieved from HYPERLINK http /simonworld .mu .nu / chronicle /067999 .php http /simonworld .mu .nu /archives /067999 .php , last accessed March 10 2007DOMESTIC HELPERS Page PAGE 1 of NUMPAGES 2...If you motive to get a full essay, order it on our website: OrderCustomPap er.com
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