Sec. 45 (5) of the Taiwanese Election and Recall Law was enacted with anintent to subsidize candidates with good political potential but restrictedfinancial resources to participate in election. The analysis of this papersuggests that Sec. 45 (5) actually fails to help such candidates in electioncompetition. Moreover, Sec. 45 (5) may lead to inefficient uses of socialresources. Other items related to Sec. 45 (5) in the Law are also discussedin the paper.