
Originally Posted by
orly_andico
and another thing.. it's easy to blame the government for being so corrupt, but a bigger problem is that PEOPLE DON'T PAY THEIR TAXES. The government's 2006 budget is 1.3 trillion pesos (or, about $24 billion).
funny thing is, the Philippine's GDP is $430 billion! (according to the black hats from the CIA World Factbook 2005). that means only about 5% of the local economic activity gets taxed. that's REALLY REALLY LOW. and this is solely due to rampant tax evasion. salary-earners bear the brunt of the tax load (for you professionals out there, you're carrying a tax load of 45% -- about 35% from your income tax, and 10% from VAT, soon to be larger). that means that fixed-income people who are by no means rich, are taxed HALF THEIR INCOME whilst corporations get away with creative accounting practices and avoid corporate income tax.
moral of the story: if tax collection were even twice as good as it is now (10% collection rate rather than 5%) all our budget woes, even with massive corruption, would disappear. We'd have money for schools, for paying off our debt, for feeding the poor.
the Philippines IS a poor country, but do you know what the GDP of Malaysia is? $230 billion. almost HALF that of the Philippines. but they managed to put up the Petronas Towers (of course their population is 1/4th that of the Philippines). but still, our country is by no means a lightweight. tax evasion (which is indicative of a lack of patriotism) and not corruption, is what's crippling us.