More Taxes! Yessss!

[voltscastillo]

[ame="http://www.youtube.com/watch?v=mimG5fuC0Rs"]http://www.youtube.com/watch?v=mimG5fuC0Rs[/ame]

what do y'all think? President Noynoy thank you!

i wonder what's next on the agenda? massive job cuts (jobs created daw nung GMA administration lang)? bye bye call centers, hahaha!

[tidus1203]

Damn! I though he promised no new taxes and instead try to make collection more efficient!

[Monseratto]

Parang balita na dati na dapat taasan yung VAT but lower yung income tax. I just hope goverment will use it on more infrastructure projects instead of babying the poor...

IMF wants next government to hike VAT


MANILA, Philippines - The International Monetary Fund (IMF) wants the value-added tax raised to 15 percent and the income tax rate slashed to 21 percent under the next administration, according to Finance Undersecretary Gil Beltran.

Beltran said he learned of the IMF position during the institution’s recent meetings in Washington, which he attended.

Raising VAT from the current 12 percent to 15 percent and cutting the income tax from 30 percent to 21 percent were mainly recommendations of University of the Philippines economists. Finance Secretary Margarito Teves has endorsed the recommendations.

“They agreed that it’s a good idea,” Beltran said referring to IMF’s stand on the proposals.

“There will be a small IMF mission to find out the policies of the next administration,” Beltran said. The mission is expected to arrive in July.

He said IMF officials believe that increasing the VAT and reducing the income tax is a feasible and doable policy and has worked in many countries.

Beltran said all presidential candidates should already be gathering their respective economic planners to thresh out their economic plans.

The DOF is still studying the impact on revenue of bigger VAT and smaller income tax.

The government wants a combination that would at least bring in more than P88 billion, which is roughly the same revenue figure achieved when VAT was raised to 12 percent from 10 percent in 2005 through the Reformed Value Added Tax Law.

In 2008, the government was able to raise P121.14 billion from the RVAT law or P32.21 billion higher than the P88.93 billion collected in 2007.

This year’s budget deficit is at P293 billion, slightly narrower than the P298.5 billion deficit incurred last year.

[uls]

kaya sabi ko dati sa ibang thread noong bago pa mag election --

no matter who becomes president, he will be facing the reality of LARGE BUDGET DEFICIT

[tidus1203]

I disagree on hiking VAT and lowering income tax. VAT kasi consumption yan eh so you make money or not you get penalized for buying products or taking services. Sa income tax the more you make the more you pay. You have the means kung baga...

[niky]

I disagree on hiking VAT and lowering income tax. VAT kasi consumption yan eh so you make money or not you get penalized for buying products or taking services. Sa income tax the more you make the more you pay. You have the means kung baga...

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.

[Lucius]

Mental retardation at its finest

[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.

[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.

[voltscastillo]

i don't think it will be a wise strategy to just start throwing money at a problem and hope that it turns out OK.

there's so much tax na. income, vat, e-vat, tax on utilities, tax on fuel. what's next? double on everything?

buti sana kung free healthcare.

[marg]

kaya sabi ko dati sa ibang thread noong bago pa mag election --

no matter who becomes president, he will be facing the reality of LARGE BUDGET DEFICIT

Not to mention the P4,000,000,000,000.00 Utang of the Pinoys.

[OldSchoolHack]

Not to mention the P4,000,000,000,000.00 Utang of the Pinoys.

wowwowee.....and i thought the Marcos screw up was over! Looks like only the names changed but the same demons are still here in Philippine society.

[niwde11]

Damn! I though he promised no new taxes and instead try to make collection more efficient!

Promises are like drawings in the air for present day politicians. And I think he will not win if he counter the present system of election.:D