More people would pay tax under a series of financial reforms proposed by legislator Christine Loh Kung-wai. The Citizens Party chairwoman also suggested phasing out housing loans for the middle class in her package to sustain a stronger economy. Ms Loh yesterday published her first shadow budget entitled: 'Restructuring During Recession: a Silver Lining in the Clouds.' It sets out to make Hong Kong ride out the financial storm and to renew growth through a tax revamp. 'The recession has exposed many fundamental weaknesses in the economy,' Ms Loh said. 'The silver lining is that it provides an opportunity to rebalance the framework of the economy.' The tax reforms in the 38-page document include a controversial three per cent sales tax and a capital gains tax. 'In good times we can afford to have a very narrow tax base. But in the future, I think we need to put people back in the tax bracket,' she said. She believed widening the tax net could drive down tax rates and ease the burden on existing taxpayers. Ms Loh said the home starter loan scheme should be scaled down and then phased out to save up to $8.8 billion. 'We are talking about those earning up to $70,000 a month. Even legislators earn less than that. Why do we have to finance their housing with public funds?' She also pressed for a land development tax, which would levy a percentage of the net profits generated from development rather than charging huge land-use conversion premiums up front.