The National Assembly passed a constitutional amendment on June 7, 2005. The amendment allows the Constitution to be amended by referendum. In effect, it allows the legal status of Taiwan, independent of China or not, to be determined by referendum. The amendment also halves the seats in the Legislative Yuan, extends the term of its members to four years, and replaces the single nontransferable voting (SNTV) in multiple membership districts for legislative elections with the single-member district dual ballot system. This paper reviews the constitutional reforms and analyzes the controversies over referendum, Taiwan independence, Chinese reunification, further constitutional amendment and the creation of a new Constitution. Constitutional reform should be made simple. No ideological considerations should interfere with constitutional reform, which should bring order, stability and predictability to government administration and provide better protection for the rights of all the people. Taiwan should follow the successful examples of advanced democratic countries to continue amending the Constitution, establish political precedents, initiate legislation and secure a fair and just interpretation of the Constitution in line with the democratic principles of majority rule and checks and balances.