More Taxes! Yessss!

[tidus1203]

If you have a salary of 8000 a month, a lower income tax saves you 720 pesos.

If you spend 8000 a month on groceries, supplies and utilities, that additional VAT costs you an additional 214 pesos.

This encourages you to spend a little less and allows you to save a lot more.

Taxes are unfair if they charge people more just because "they can afford it". Just because you get 16,000 a month (for example...) should you give a bigger percentage of your salary than a guy getting 8,000 a month? Pareho naman kayong tao lang, di ba? A high income tax discourages people from working harder to gain a bigger salary. Which lowers productivity. Low income taxes allow lower class and middle class people to save up and raise their standard of living.

We do have exemption for minimum wage earners on income tax... And I support that... The problem of VAT kasi is its REGRESSIVE while income tax is PROGRESSIVE. Regressive meaning no matter how rich or poor you are the tax burden is the same. So a tricycle driver buying gas at P45/L will pay the same VAT vs a corrupt politician gassing up his escorts American SUV at P45/L so same lang VAT nila... Whilst pag income tax the tricycle driver might not even have to pay income tax while the politician (assuming he does not evade it) will most certainly have to pay income tax... VAT is the European model, I prefer the American model of taxation where there is high income tax but NO VAT or consumption tax...

[daimengrui]

OMG! Flip Flopping this early? Pag aralan mo(Noynoy) nga muna yung deficit bago ka nagbibitaw ng salita. Leave it to the economic experts.

[Chikselog]

"We will refrain from imposing new taxes or increasing tax rates......."

Sana inalam nya muna ang "status" ng bansa natin bago niya sabihin to.

Ang sama tuloy ng dating. Kung kailan siya ang panalo saka biglang ganito.

[tidus1203]

It might be possible not to impose new taxes and at the same time trim the deficit. Its starts with better collection and of course as part of his main platform, fighting corruption... I am sure there is also areas where they can cut costs, maybe even eliminating unecessary departments and commissions....

[OldSchoolHack]

We do have exemption for minimum wage earners on income tax... And I support that... The problem of VAT kasi is its REGRESSIVE while income tax is PROGRESSIVE. Regressive meaning no matter how rich or poor you are the tax burden is the same. So a tricycle driver buying gas at P45/L will pay the same VAT vs a corrupt politician gassing up his escorts American SUV at P45/L so same lang VAT nila... Whilst pag income tax the tricycle driver might not even have to pay income tax while the politician (assuming he does not evade it) will most certainly have to pay income tax... VAT is the European model, I prefer the American model of taxation where there is high income tax but NO VAT or consumption tax...

Good point. But VAT can also be progressive. A tricycle driver will not use too much gas while a corrupt politician has lots of cars and escorts and will consequently use a lot of gas. Parang isda. Pag mahirap ka baka 1/4 kilo lang mabili mong galunggong sa isang araw. While a rich family will buy 2 kilos of lapulapu a day. If VAT is applied to both purchases, the rich family will be taxed more.

[OldSchoolHack]

To be fair with Noynoy, he did say pag na exhaust na tax base for collection. Saka dagdag taxes.

Which is a dream. Pangarap. Kasi (wag lahatin daw) 99% of business misdeclares, under declares, use double books in declaring their income. Add to that many people who do the same for their income tax declaration.

New taxes will burden only those who pay taxes in the first place.

[tidus1203]

Good point. But VAT can also be progressive. A tricycle driver will not use too much gas while a corrupt politician has lots of cars and escorts and will consequently use a lot of gas. Parang isda. Pag mahirap ka baka 1/4 kilo lang mabili mong galunggong sa isang araw. While a rich family will buy 2 kilos of lapulapu a day. If VAT is applied to both purchases, the rich family will be taxed more.

Yes but because you are consuming more that's why you pay more tax. Tignan mo lang at a unit price then. Sige gas was a bad example since rich people use more gas than poor. How about food. While in general rich people still spend more on food, its safe to say rich and poor people have the same appetite. Example bumili ka ng Chickenjoy sa Jollibee... That 2 piece meal is priced the same and has the same VAT for a minimum wager buying that 2 pc. VS a CEO buying that same 2 piece... In essence on a PER UNIT BASIS talo talaga ang mas mahirap...

Pero kung income tax naka base yan sa income mo. Now its true VAT is less prone to cheating because its factored to the price, but then again as I stated its more punishing to poorer people...

Eto medyo mas complex economics na din. Higher VAT favors savings over consumption. Yes on a personal economics, savings is a good thing pero for the greater economy SPENDING is better than SAVING. If people save and scrimp business will lose sales, lose sales will mean firing people, firing people means even less consumption since wala na silang trabaho and the economic downward spiral continues.

[CVT]

Para sa ating mga empleyado,- this is a better approach to tax collection,- walang dayaan. Lahat,- pati nandadaya sa pagpa-file ng kanilang income tax,- may dagdag na tama... Does not necessarily mean less spending, though, as these people have more disposable income....(And, I think it is about time that the poor and the "other poor" participate more in nation building...)

Let's see if it will be implemented... Also, how it will be implemented......

9909:gotcha:

[wowiesy]

It might be possible not to impose new taxes and at the same time trim the deficit. Its starts with better collection and of course as part of his main platform, fighting corruption... I am sure there is also areas where they can cut costs, maybe even eliminating unecessary departments and commissions....

A big chucnk of the deficit can be wiped out by getting rid of the "syndicates" within the BIR and the BOC... but.. as a President who is "only" elected and is impeachable... and a Cabinet secretary - who has to go through "only" the Commission on Appointments, and a Customs / BIR Commissioner who are also "only" appointed, what can be done against the bureaucracy who are tenured and can only be discharged for cause?

Sometimes, mas madali magpalit ng President, and Cabinet Secretaries and Bureau heads since they are appointed lang, intriga lang over media, palakihin sa media, malamang masibak na... pero for the bureaucracy, have to prove before the court (or administratively)... so how do you prove that the syndicate pocketed off 50% of the amount they collected from the businessman, and only gave a proper receipt for the other 50% going to government coffers? Maghintay ka na may mag squeal??

[shadow]

sabi sa video baka ma-obliga siya and hinde sinabing itataas na and he said before thinking of new taxes he will first collect all the existing taxes.

it's funny how supporters of losing candidates spin MIGHT increase to WILL increase.