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LOWERING TAXES
CONS
PROS
Increases
disposable income of
citizens and enables economic
growth. Another side-effect is it
limits government waste by requiring
government spending to be justified
against other possible government
expenditures (Government has a
tighter budget).
Possible
TAX
ADDITIONAL
Plus 5%
500
2,500
8,500
22,500
50,000
Over 500,000
125,000
Proposal
INCOME
Tax
ADDITIONAL
250,000
2,500
2,500
32,500
132,500
492,000
More than 5M
1.45M
This proposed structure provides tax relief to the majority who get
P400,000 and lower a year, and this will include the millions of minimum
wage earners.
BENEFITS
INCREASING VAT
PROS
CONS
increased
result to expected
government revenues
NOTE : In terms of revenue impact, the first package will actually result in a net gain of P220.7 billion.
RECOMMENDATIONS
More spending money for families through tax cuts
Open economy to direct foreign investments
A smaller government is better.
The government revenues should just focus more on the protection of
its citizens via police and armed forces, and assurance of a good
functioning and credible justice system. Agencies which distribute
money and give subsidies to businesses or individuals, whether they
are rich or poor, should be lessened.
True capitalism is the best system for a society to progress.
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