eto lang yata ang medyo ok na nakitang balita sa newspapers... sana magkatotoo. dati nag propose si congressman tenga a.k.a. de venecia na gawing fixed rate ang income tax at 15% for all salary levels. that was before he ran for president. obviously, walang nangyari dun sa proposal nya.


20-percent tax cut for salaried workers proposed
By Jess Diaz
The Philippine Star 10/26/2005

Millions of salaried workers may soon get a breather from high consumer prices in the form of tax relief.

Albay Rep. Joey Salceda, who advises President Arroyo on the economy, is proposing a tax cut of at least 20 percent for salaried workers. His proposal is contained in a letter he sent to Mrs. Arroyo, who was his Ateneo economics teacher.

Salceda told reporters yesterday that workers should get a tax relief to ease the "shock" they have been absorbing from higher taxes and the increasing cost of petroleum products.

He said since January this year, this group of taxpayers has shelled out more than P250 billion in the form payments for increased taxes and cost of electricity and fuel.

He said the tax cut would also make the tax structure more equitable.

"As of now, wage earners contribute P84 billion in withheld income taxes, while businessmen and professionals are chipping in only P16 billion. This is iniquitous. There is a need to shift the burden to the self-employed and professionals," he added.

There are several tax measures pending in the House and the Senate affecting salaried workers.

In the Senate, Sen. Ralph Recto has authored a measure seeking a 20-percent cut in personal income taxes. Senators Juan Ponce Enrile and Loi Estrada have additional proposals to cut income taxes by at least half.

In the House, Tarlac Rep. Jesli Lapus has a proposal to increase the tax on traders, self-employed individuals and professionals by limiting their tax-deductible costs and expenses.

Salceda said the income to be realized from the Lapus measure would make up for the revenue loss from a 20-percent tax relief for wage earners.

"The estimated P15.5 billion proceeds from the Lapus proposal could be used to finance lowering income taxes on salaried individuals," he said.

In his memorandum to the President, Salceda also reiterated his suggestion to defer the application of the 10-percent value-added tax on electricity and petroleum products like gasoline and diesel until the price of crude oil in the world market falls to about $50 per barrel from the present $60 level.