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    GIRBERT ADLAWON
    The document discusses Senator Sonny Angara pushing for Senate Bill 2149 to lower income tax rates for the Philippine working middle class. Currently, the middle class pays high taxes compared to other Southeast Asian countries. Lowering taxes could increase purchasing power and quality of life for the middle class by leaving them with more money, as seen in other countries that have implemented tax cuts. However, the Bureau of Internal Revenue is concerned it may reduce government revenue and ability to fund projects. The document argues that tax cuts could actually increase tax collections if the increased purchasing power grows the economy and consumption. An individual also expresses that high taxes have burdened them with debt while they see little return, and tax cuts could help them afford

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    Reaction Paper

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    GIRBERT ADLAWON
    66 views5 pages
    The document discusses Senator Sonny Angara pushing for Senate Bill 2149 to lower income tax rates for the Philippine working middle class. Currently, the middle class pays high taxes compared to other Southeast Asian countries. Lowering taxes could increase purchasing power and quality of life for the middle class by leaving them with more money, as seen in other countries that have implemented tax cuts. However, the Bureau of Internal Revenue is concerned it may reduce government revenue and ability to fund projects. The document argues that tax cuts could actually increase tax collections if the increased purchasing power grows the economy and consumption. An individual also expresses that high taxes have burdened them with debt while they see little return, and tax cuts could help them afford

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    The document discusses Senator Sonny Angara pushing for Senate Bill 2149 to lower income tax rates for the Philippine working middle class. Currently, the middle class pays high taxes compared to other Southeast Asian countries. Lowering taxes could increase purchasing power and quality of life for the middle class by leaving them with more money, as seen in other countries that have implemented tax cuts. However, the Bureau of Internal Revenue is concerned it may reduce government revenue and ability to fund projects. The document argues that tax cuts could actually increase tax collections if the increased purchasing power grows the economy and consumption. An individual also expresses that high taxes have burdened them with debt while they see little return, and tax cuts could help them afford

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    66 views5 pages

    Reaction Paper

    Uploaded by

    GIRBERT ADLAWON
    The document discusses Senator Sonny Angara pushing for Senate Bill 2149 to lower income tax rates for the Philippine working middle class. Currently, the middle class pays high taxes compared to other Southeast Asian countries. Lowering taxes could increase purchasing power and quality of life for the middle class by leaving them with more money, as seen in other countries that have implemented tax cuts. However, the Bureau of Internal Revenue is concerned it may reduce government revenue and ability to fund projects. The document argues that tax cuts could actually increase tax collections if the increased purchasing power grows the economy and consumption. An individual also expresses that high taxes have burdened them with debt while they see little return, and tax cuts could help them afford

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    Overtaxing Working, Middle Classes

    (reported by Sen. Sonny Angara)

    A Reaction Paper
    Presented to

    Mew Chun Pamaran, Ph.D.


    Professor

    School of Graduate Studies


    ATENEO DE ZAMBOANGA UNIVERSITY
    La Purisima St., Zamboanga City

    In Partial Fulfillment
    of the Requirements in the Course
    Philosophy in Development Change (Dev M 704)

    Submitted by

    GIRBERT N. ADLAWON
    September 13, 2014
    The Philippine working middles classes are the most affected sector in the society in

    terms of tax imposition by the government. Accordingly, these employed professionals in

    the country are being taxed in many folds in contrast with its neighboring Southeast Asian

    nations. While the country’s counterparts enjoy their living conditions due to a high

    purchasing capability, ours on the other hand resorted to different forms of debts just to

    sustain the necessities in life. Due to this occurrence, lawmakers in the country like Senator

    Sonny Angara is pushing Senate Bill No. 2149 that would initially decrease the percentage

    of income tax imposed and collected by the state to increase the purchasing capability of the

    intermediate classes.

    In lieu with this, the Bureau of Internal and Revenue headed by Kim Henares reacted on

    the issue because it would initially delimit government’s capacity to improve and

    disseminate various projects and services towards its stakeholders. However, the proponent

    of the bill argued that if ever it becomes a law, it would practically improve the middle

    classes’ mode of living based on the situations of other countries which embraced such form

    of transition.

    Essentially, the issue at hand is very timely. As we all know, the Philippine economy is

    performing well in today’s time. The country’s gross national product is faring better

    compared to its neighboring Asian countries. Despite the country’s economic development,

    many are still making complaints more especially those in the intermediate classes.

    Accordingly, they still could not feel such glimpse of change. On the other hand, the

    wealthy folks who only comprise a pinch of the total percentage of the middle class are

    getting richer and richer. So, it leaves a big question among us. If there is really

    development, why the contributing middle classes are not feeling it despite their big
    investment in terms of tax remittances from income. If we are gaining extra mileage today,

    why we could not increase the basic salary of the country’s intermediate labor force if we

    indeed gained from various investments. If the taxpayers’ money is just wasted due to

    corruption, why we still pursue a very high tax rate by placing the burden among the middle

    classes’ shoulders. If the government really intends to improve life by means of taxes why

    its imposition is not equitable. The fact is others especially those above the middle class line

    are not treated fairly by the country’s tax provisions. Foreign individuals are given tax

    exemptions. Therefore, equitability is not fully afforded between the rich and those at the

    middle. So, at this point of time, if the rich enjoys considerable favor from tax exemptions,

    then the same should apply among the intermediate classes.

    Corollary to this, the main point here is the practicability of the idea that the

    imposition of a tax cut is really beneficial among the middle working class and, on one

    hand, would not sacrifice the nation’s economic interest in a general perspective.

    Additionally, it should be examined thoroughly if the move really is a vantage point or it

    would only put the country in a great despair. Say for instance, tax cut means low revenues

    from the government. This means that there would be less projects or services rendered to

    various individuals due to financial incapability. On the other hand, the tax payers would

    enjoy considerable purchasing benefits such as additional accessibility to health care,

    improved way of life, and other important things. More practically, debts to several agencies

    would be minimized.

    Based on the report of Senator Sonny Angara that tax cut does not affect the

    financial aspect of the government and it even increases tax collections of countries which

    are currently imposing such move. If we are going to make Thailand or Malaysia as an
    example, their countries’ economy are as far better than ours in which their taxes are lower

    in rates. The families in the said countries are enjoying the economic victories as their

    purchasing power are greater than ours. We should take into account that how well each

    family lives, it pointedly reflects the real face of a country. So, why we could not do the

    same in our own home. Thus, increasing our purchasing power would definitely help our

    country generate more income from taxes coming from goods and services that we purchase.

    It would not be a great lost at all. The consumers are buying more. The producers continue

    to escalate their income as consumers have increased their purchasing power. The

    government as a result of this interaction collects taxes either in double or triple. This

    analysis is based on the situation of countries which undergo such change.

    From my personal perspective, lowered tax would definitely improve my way of life.

    Currently, with the surging tax rate, I still could not feel that life is being improved. It seems

    to me that the government is not giving something good in return that is worth noting at all.

    By this time, I only get minimum of what I am supposed to receive and almost everything is

    getting expensive. I even ended up going into various lending institutions just to compensate

    many needs such as house repair, education and other emergencies.

    Concurrently, with the presence of corruption, it is impractical to impose higher

    taxes wherein the revenues only go to the pockets of the unfaithful politicians. Henceforth, it

    would be better if the working middle class would directly benefit from it through tax

    reductions.

    Thus, I would be totally happy if taxes would be lowered in the country so I could

    buy other important things to support life in general. Hopefully, with this type of
    development in which I am very much positive of, a middle class like me could fully afford

    buying a house and would not just end up renting for life.

    Reference:
    Angara, S. (2014, August 24). Retrieved September 9, 2014, from Inquirer.net:
    http://opinion.inquirer.net/77762/overtaxing-working-middle-classes

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