#Philippine #tax regime ensures middle class subsidises poor and rich

BIR Commissioner Kim Henares often justifies the efforts of her agency as being essential for the delivery of social and economic services, school buildings, farm-to-market roads, etc.

Ostensibly, because the Philippines follows the progressive system of taxation, the BIR only wants to ensure that EVERYONE pays their ‘fair share’ — the wealthy is supposed to be taxed more than the less wealthy. What reality shows us is that our system of taxation PUNISHES the middle class who are taxed at rates closer to the wealthy. How is it ‘fair’ when one segment of society is made to shoulder the responsibility not just for the very poor, BUT ALSO the very rich?

Look around you. EVERYTHING IN THE PHILIPPINES IS TAXED! There is VAT imposed on practically anything you purchase. The VAT on homeowners’ association dues means that you are taxed for simply taking up residence in the country. What this all comes down to is that the prices of all goods and services go up. And because everything is taxed, the cost of living is higher.

Filipinos taxpayers have yet to see the fruits of their taxes. Instead, what you hear about are reports of graft and corruption in government. From over-inflated project costs used to accommodate huge kickbacks to substandard construction that ensure ‘repairs’ will be needed within a few short months of completion to provinces where ‘public service’ is a family business and the governor, congressmen, and mayors are related and are all well-compensated.



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