Journal Online – Marcos backs move to reduce income tax
By Bernadette Tamayo | Journal Online
Bongbong Marcos supports mounting calls to reduce income tax saying that with the out-dated tax brackets many middle-class taxpayers are paying the same rate as the rich.
He earlier said that the outdated income tax system is one of the reasons why the Philippines ranked lower in this year’s Prosperity Index, dropping to 74th compared to last year when it placed 67th in the ranking despite the country’s good economic indicators.
“I can’t understand the refusal of Malacañang to support the tax reform measure when the administration has been consistently underspending billions of pesos over the years, citing reports saying the government underspent a total of over P600 billion from 2011 to 2014,” said Marcos.
Some lawmakers pushing for the reduction of income tax have apparently given up their cause after President Benigno Aquino rejected last ditch efforts for him to approve the proposed tax cuts, branding the measure pending at the House of Representatives as a mere “papogi” bill.
“I think we have not seen the last of the proposal; I believe it will be revived under the next administration which will be more receptive to such proposal. There are many things we have to address in our fiscal policy under the Tax Code,” said Marcos.
He said that in rejecting the proposed tax cuts the Aquino administration “lost” an opportunity to alleviate the plight of many Filipino taxpayers who are already groaning under the heavy tax burden.
“Why do we need a bigger revenue collections when the funds remain idle? And we’re talking here of funds already appropriated. We need to strike a balance between our needs and our revenue collection targets,” said Marcos.
“Many of our countrymen feel the economic growth is not inclusive, that it mainly benefits the rich. Giving our low income earners a respite from heavy tax burden is one way to address this concern,” he said.
He is confident the next administration will be more open to proposals for tax cuts that the Aquino administration “consistently rejected.”