Excise Tax? When June 2017 or 2018?

[CVT]

That may be true in Europe or the US but is sadly not the case in PH.

Here, the fifth to the tenth man is taxed the same (in income taxes 32%), the first to tenth man taxed the same in consumer goods (in VAT and excise), the third to fourth man taxed more for cars (vs pre-TRAIN rates).

And the tenth man (the Ayalas, Tans, Sy, & co.) supposedly packing his bag will not happen in PH, too, even if, say, taxed to 40%.

Our congress could do better but is unfortunately not a representative of the people in their districts but of themselves. So all aboard the cheaper LC200.

Bro, the story gave us the absolute amounts each has to pay in "taxes" and so should be representative of their various income levels and the same tax rates you mentioned....

32% of $50 is $16; with $500 it will be $160 for example.

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[Monseratto]

Economics

Suppose that every day, ten men go out for beer and the bill for all ten comes to $100. If they paid their bill the way we pay our taxes, it would go something like this...

The first four men (the poorest) would pay nothing.
The fifth would pay $1.
The sixth would pay $3.
The seventh would pay $7..
The eighth would pay $12.
The ninth would pay $18.
The tenth man (the richest) would pay $59.

So, that's what they decided to do.

The ten men drank in the bar every day and seemed quite happy with the arrangement, until one day, the owner threw them a curve ball. "Since you are all such good customers," he said, "I'm going to reduce the cost of your daily beer by $20.". Drinks for the ten men would now cost just $80.

The group still wanted to pay their bill the way we pay our taxes. So the first four men were unaffected. They would still drink for free. But what about the other six men? The paying customers? How could they divide the $20 windfall so that everyone would get his fair share?

They realized that $20 divided by six is $3.33. But if they subtracted that from everybody's share, then the fifth man and the sixth man would each end up being paid to drink his beer.
So, the bar owner suggested that it would be fair to reduce each man's bill by a higher percentage the poorer he was, to follow the principle of the tax system they had been using, and he proceeded to work out the amounts he suggested that each should now pay.

And so the fifth man, like the first four, now paid nothing (100% saving).
The sixth now paid $2 instead of $3 (33% saving).
The seventh now paid $5 instead of $7 (28% saving).
The eighth now paid $9 instead of $12 (25% saving).
The ninth now paid $14 instead of $18 (22% saving).
The tenth now paid $49 instead of $59 (16% saving).

Each of the six was better off than before. And the first four continued to drink for free. But, once outside the bar, the men began to compare their savings.

"I only got a dollar out of the $20 saving," declared the sixth man. He pointed to the tenth man,"but he got $10!"

"Yeah, that's right," exclaimed the fifth man. "I only saved a dollar too. It's unfair that he got ten times more benefit than me!"

"That's true!" shouted the seventh man. "Why should he get $10 back, when I got only $2? The wealthy get all the breaks!"

"Wait a minute," yelled the first four men in unison, "we didn't get anything at all. This new tax system exploits the poor!" The nine men surrounded the tenth and beat him up.

The next night the tenth man didn't show up for drinks, so the nine sat down and had their beers without him. But when it came time to pay the bill, they discovered something important. They didn't have enough money between all of them for even half of the bill!

And that, boys and girls, journalists and government ministers, is how our tax system works. The people who already pay the highest taxes will naturally get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up anymore. In fact, they might start drinking overseas, where the atmosphere is
somewhat friendlier.

David R. Kamerschen, Ph.D.
Professor of Economics.

For those who understand, no explanation is needed. For those who do not understand, no explanation is possible.

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[dr. d]

well, they're right about my not understanding it.

[Monseratto]

[CVT]

"Napakasakit!

Kuya Eddie....."...

[falken]

No problem for us, our family doesn't drink soft drinks anyway.

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[dreamur]

*EQ, promise we will not beat you if you foot the bill on the next EB.

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[Egan101]

*EQ, promise we will not beat you if you foot the bill on the next EB.

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Me too. Kelan ba next EB? Hehehe

[Walter]

France tried to tax 75% from those earning 1M and above ...

[EQAddict]

*EQ, promise we will not beat you if you foot the bill on the next EB.

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Hehe when is that mythical EB?

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[Egan101]

Hehe when is that mythical EB?

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For folks within BGC and Makati, I guess it is easy to come up with something. Sama na rin yung mga taga Paranaque kasi madali lang byahe thru SLEX.

[ninjababez]

Hehe when is that mythical EB?

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For folks within BGC and Makati, I guess it is easy to come up with something. Sama na rin yung mga taga Paranaque kasi madali lang byahe thru SLEX.

Pwede nako weekend hehehe

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[RR_22]

This is such an interesting topic where everyone has an opinion. This thread makes it a good read.

The bill has been passed and soon to be implemented. My take is how different social statuses would behave with this new govt intiative.

Poor - the government has arguably prioritized this group. Subsidized/free housing, cash grants, PAO-assistance and some more. It is in fact correct that they will suffer from this excise tax. With no additional take home pay and will endure higher cost of living. My take: Isn't time for the group to level up their status of living. Hoping I will not be misunderstood, but a quote once said if you don't want your situation, change it (and change your mindset too).

Middle/Upper classes- My take: For majority, they work hard for their take home pay. Regardless, they get tax high or less. With this change, I see them become empowered through two things:
1) Since media quoted them with higher savings, it will also mean higher purchasing power. This would mean, the group would likely to fuel money circulation by more purchases and could open up new business.
2) Local employment - If job offer abroad gives this $$ and with the new ph tax system, would they reconsider the net pay difference and be with loved ones here?




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[sean-archer]

Visited Casa today, A city, amaze and mobilio unit na lang nasa showroom. Nagsibilihan daw last minute ang mga tao.

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[dr. d]

Visited Casa today, A city, amaze and mobilio unit na lang nasa showroom. Nagsibilihan daw last minute ang mga tao.

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nagbakasyon lang ang mga bodegeros.
"next week na kami magdedeliver ng kotse."

[Claud]

Kelan talaga maimplement ung tax? This 2018 na ba agad?

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[dos2]

Kelan talaga maimplement ung tax? This 2018 na ba agad?

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Yes

[Verbl Kint]

Have the Implementing Rules and Regulations been published? Magkakagulo yan kung wala pa considering it's supposed to be effective Jan. 1, 2018.

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[sphinxz]

Malaki pala binaba ng Hilux. G AT now at 1.24M from 1.335M. How reliable is this?

[mda]

Malaki pala binaba ng Hilux. G AT now at 1.24M from 1.335M. How reliable is this?

Where's the info from?