President Ma Ying-jeou has asked the Executive Yuan to review its industrial innovation bill after the bill was nixed by the Legislature. We urge the Executive Yuan to eliminate three flaws in the bill, namely the reckless distribution of tax breaks and subsidies and the reckless designation of strategic industries to be aided by government. We have pointed out before that allowing 35 percent of a company's spending on research and development to be deducted from its taxable income is a far bigger incentive than that offered by Japan, South Korea and Singapore. It will encourage companies to avoid paying tax by making up false research and development programs. The bill also contradicts itself by offering a preferred corporate income tax rate of 15 percent to multinational companies with headquarters in Taiwan without regard to their research and development spending. The bill does seem to be much fairer than its predecessor by offering tax breaks according to the purpose of the expenditure rather than by industry category. But what we are worried about is that the government cannot shed its outdated thinking by offering tax breaks to so-called strategic industries, such as the biotech industry and culture and innovation sector. The government's reckless choice of strategic industries and giving them tax breaks will do harm to both the country's finances and its economy. 