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Jakarta Post

Enter presidential candidates’ tax cut contest

  • Winarno Zain
    Winarno Zain

    Commissioner in a publicly listed oil and gas service company

PREMIUM
Jakarta   /   Mon, April 1, 2019   /  04:35 pm
Enter presidential candidates’ tax cut contest Presidential and vice presidential candidates (from left to right) Ma'ruf Amin, Joko "Jokowi" Widodo, Prabowo Subianto and Sandiaga Uno. (kompas.com/Abba Gabrilin)

In front of thousands of businessmen who flocked to Senayan sports complex in Jakarta recently, President Joko “Jokowi” Widodo gave a campaign speech in which he promised to reduce corporate income taxes if he is reelected as president, a promise that was warmly welcomed by the audience. The Prabowo Subianto-Sandiaga Uno camp, the rival presidential and vice-presidential candidates, also vowed to cut taxes although the emphasis was on reducing personal income taxes. The economic argument behind the proposed tax cuts is the belief that if tax is reduced, businesses will have an incentive to invest and households will have incentives to consume. As the economy grows, this will increase government revenues, which will more than compensate for the tax cut that the government has provided. An economist from the Prabowo-Sandiaga camp, Dradjad Wibowo even invoked the famous...

Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.