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MAKE MINIMUM WAGES TAX-FREE

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freefront

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on: Jun 08, 2014, 11:05 PM
http://www.philstar.com/congress/articles/2014/05/16/1323810/senate-bill-exempts-sari-sari-store-owners-tricycle-drivers-taxes

MANILA, Philippines - Farmers, fishermen, tricycle drivers and small sari-sari store owners have found an ally in Sen. Bam Aquino who has filed a bill exempting marginal income earners (MIEs) from payment of income tax.
Aquino said MIEs or self-employed individuals who have an income not more than P150,000
annually should be spared from paying income tax just like minimum wage earners.


http://www.philstar.com/congress/articles/2014/03/28/1306046/house-eyes-lower-income-tax-2016


MANILA, Philippines - The House of Representatives is aiming to reduce income tax rates for both individual and corporate taxpayers before President Aquino's term ends on June 30, 2016.

Quimbo, who is ways and means committee chairman, said he is inclined to support the proposal of his Senate counterpart, Juan Edgardo Angara, to cut individual income tax rates to 25 percent from the current 32 percent.

He said he and his colleagues would work on revenue-raising measures, including "scrapping the tax privileges of industries that no longer need these, increasing mining taxes and modernizing the Bureau of Customs."

He said his committee is now drafting the lower income tax bill in coordination with Angara's panel and the National Tax Research Center, since the measure has to emanate from the House.

"The objective is to carry out the President's vision to have a growth that's inclusive, growth that workers can feel," he said.

He said lower income tax would mean more disposable income for workers, who could either spend the money or save it.

Gunigundo said his proposal would exempt workers earning up to P180,000 a year from taxation.
He said it would add more than 2.4 million families to millions of minimum wage earners who are exempted from income tax.

He said these additional tax-exempt individuals would include government personnel with Salary Grade 8 like policemen with Police Officer 1 rank (P14,834 basic pay), soldiers with the rank of Private (basic pay also P14,834) and many state workers whose pay level is P15,000.

"The reduction in income tax rates will stimulate the economy by providing individual taxpayers more disposable income, which they can either save or spend in the engagement of services or purchase of goods that are subject to the 12-percent value added tax (VAT)," he said.

He added that since people tend to spend their disposable income, "there would be increased demand for services and goods, and businesses would have to cope with this by hiring more workers to increase production."

Gunigundo conceded that his proposal would result in a P90-billion revenue loss for the government.
"But the initial revenue drop should not deter Congress from reducing income tax rates. The bigger picture, which is the Philippine economy, will in the long run gain much more in terms of lower unemployment, more VAT collections, a happier people and more productivity," he said.

He said the Department of Finance and the Bureau of Internal Revenue would treat his projected P90-billion drop in collections as a loss on the part of the government.

*chop chop editing mine."he" couldn't have said all that :hihi: all bolds mine.


I'm more of the "blued" sentiment> The bigger picture, which is the Philippine economy, will in the long run gain much more in terms of lower unemployment, more VAT collections, a happier people and more productivity,"

One smart cookie said: she doesn't like it. It comes across like a punishment for having a raise or getting on the next step of the economic ladder  :think: Kasi naman, tax-free ka tapos naging regular o kaya na-promote, ang salary eh less 25% agad?!? Ba't ka pa daw magpapa-promote? Eh di p-g ka na lang para hindi sayang ang 25%?

And then there's this:  National Tax Research Center<<<---- is this a government agency? Don't we have a think-tank of the brightest in the land to catch things ^ like that?


vicces

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Reply #1 on: Jun 09, 2014, 06:08 AM
and Kim Henares' curt reply.. "Sige, subukan nyo!"  :gun1: :gun2:


vicces

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Reply #2 on: Jun 09, 2014, 06:56 AM
MIEs or self-employed individuals who have an income not more than P150,000
annually should be spared from paying income tax just like minimum wage earners.

^I thought kasama mga yan sa exempted, basta below the threshhold ng minimum wage earners, regardless kung self-employed, mie, etc... hindi pala :think:.. pero instead of proposing a new scheme for the low income, how about just redefining " minimum wage earners" to include these individuals? boom problem solved.

as for the P90B potential loss... maybe the rich can pick up the tab on that. maybe they should look into the possibility of adopting France's "tax on the wealthy people", which is 75% of their net income? ung uber rich lang naman, like billionaires (bawasan mo na lang kita mo epep ng 100k para di ka tamaan).. I think thats a way to forcibly redistribute and/or deconcentrate wealth... or force them gazillionaires to spend or donate to charity..  just thinkin out loud..
« Last Edit: Jun 09, 2014, 06:58 AM by vicces »


bajoyjoy

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Reply #3 on: Jun 09, 2014, 12:36 PM

And then there's this:  National Tax Research Center<<<---- is this a government agency? Don't we have a think-tank of the brightest in the land to catch things ^ like that?

Catch things like what ff? The NTRC is an attached agency of the Dept of Finance, i had a short stint there. :D  I think what they usually study is the impact of a proposed tax measure to tax collection/revenue, not the effect to the taxpayers :hihi:

as for the P90B potential loss... maybe the rich can pick up the tab on that. maybe they should look into the possibility of adopting France's "tax on the wealthy people", which is 75% of their net income? ung uber rich lang naman, like billionaires (bawasan mo na lang kita mo epep ng 100k para di ka tamaan).. I think thats a way to forcibly redistribute and/or deconcentrate wealth... or force them gazillionaires to spend or donate to charity..  just thinkin out loud..
Pwede yan, pero most likely aangal sila Sy, Ayala, Tan, atbp. and maybe file for a suit to invalidate the tax imposition for being oppressive and confiscatory. It could also scare away these invstors to move their business elsewhere.



freefront

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Reply #4 on: Jun 10, 2014, 02:51 AM
MIEs or self-employed individuals who have an income not more than P150,000
annually should be spared from paying income tax just like minimum wage earners.

Php 150,000 less SSS, Philhealth---if people making that even think of taking care of themselves that way---is way too little to live on. The only way they can make it ( in the city) is to be in a household where there is a pooled fund in a household, to take care of everyday necessities.

Catch things like what ff?

Like this for instance:
quote from vicces
"^I thought kasama mga yan sa exempted, basta below the threshhold ng minimum wage earners, regardless kung self-employed, mie, etc... hindi pala :think:.. pero instead of proposing a new scheme for the low income, how about just redefining " minimum wage earners" to include these individuals? boom problem solved."

>>>Mostly yung mga bills na ipapasa tapos tsaka may aangal, may TRO, tapos kailangan ng amendment at dahil hindi galing sa kanila ang panukala, walang integration sa ibang panukala etc. then they waste more time and money and have more camera time, etc.

>>>Yung sa opinion na nabanggit ko--- from 150,000 then next month 160,000 ka na->>>pasok agad sa 25% ang gross income na 160,000. Or yung 10,000 lang na nadagdag?

^^^Mga simpleng tanong na nakakabagabag. Dahil busy sa kayod, wala bang mga advocacy groups to catch those questions and forward them to the kinauukulan?

Quote
The NTRC is an attached agency of the Dept of Finance, i had a short stint there. :D  I think what they usually study is the impact of a proposed tax measure to tax collection/revenue, not the effect to the taxpayers :hihi:

I had a very bad experience with the  airport BOC. The DOF should go check the airport BOC. As in," Oisssttt! People are riding in planes. They've got money and belongings to be taxed some more"  :hihi: and to tell BOC to make it fast and easy< I think people won't mind paying up as long as the process of bleeding them is not so tedious.

Quote
Pwede yan, pero most likely aangal sila Sy, Ayala, Tan, atbp. and maybe file for a suit to invalidate the tax imposition for being oppressive and confiscatory. It could also scare away these invstors to move their business elsewhere.

You are referring to this?

 
Quote
as for the P90B potential loss... maybe the rich can pick up the tab on that. maybe they should look into the possibility of adopting France's "tax on the wealthy people", which is 75% of their net income? ung uber rich lang naman, like billionaires (bawasan mo na lang kita mo epep ng 100k para di ka tamaan).. I think thats a way to forcibly redistribute and/or deconcentrate wealth... or force them gazillionaires to spend or donate to charity..  just thinkin out loud..

France has  Socialist leanings, right? One thing I remember why I didn't want to be in a socialist country( aside from I'd like to travel freely and not ask for the dispensation of the gov't or to simply hold my own passport<high school lang), is that as you get more income=your tax rate goes higher. Just one way to try to impose the classless society( high school sabi ko nga) by inhibiting the capitalist greed and redistributing the wealth.

Anyway, the uber rich can take care of themselves. They can move to Singapore or Switzerland. They have offshore accounts. They buy new cars all the time on company expense. They also donate for the tax credit/rebate. They have a stable of accountants to find ways to minimize taxes, etc.  They get cozy with the administration in a fun way  :)

Making MIE's and minimum wage workers tax-exempt will drive the economy, bottom up. Also lessen the paper work of the BIR. Electronic filing of ITR, maybe?

I am freaked out by this : additional tax-exempt individuals would include government personnel with Salary Grade 8 like policemen with Police Officer 1 rank (P14,834 basic pay), soldiers with the rank of Private (basic pay also P14,834) and many state workers whose pay level is P15,000. <<<No wonder......


vicces

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Reply #5 on: Jun 10, 2014, 08:38 AM
Pwede yan, pero most likely aangal sila Sy, Ayala, Tan, atbp. and maybe file for a suit to invalidate the tax imposition for being oppressive and confiscatory. It could also scare away these invstors to move their business elsewhere.
May tax background ka pala bjj, e di ba ang mabisang pangontra sa argument na "oppressive and confiscatory" is the lifeblood theory? :hihi: saka pano naman tayo maniniwala na naooppress sila e sila naman ang higit na nakikinabang sa lahat ng yaman ng pinas? ipro-rate lang natin ung tax burden with the benefits received. baliktad kasi e, kung sino ung nasa tuktok ng tatsulok, sila pa yung maraming tax shields and allowable deductions, ie., means to avoid tax.

as for scaring investors away.. dito yata pumapasok ung dictum na "the power to tax is the power to destroy"... again, aalis nga siguro sila kung mas malaki na ang binabayaran kaysa benepisyo nila dito. pero net income/worth naman ang tataxan, pwede siguro ung excess lang (eg., amount in excess of P1B)  ang patawan ng wealth tax.


Quote from: freefront
^^^Mga simpleng tanong na nakakabagabag. Dahil busy sa kayod, wala bang mga advocacy groups to catch those questions and forward them to the kinauukulan?
u think the kinauukulan would even bother to listen?

Quote
I had a very bad experience with the  airport BOC. The DOF should go check the airport BOC. As in," Oisssttt! People are riding in planes. They've got money and belongings to be taxed some more"  :hihi: and to tell BOC to make it fast and easy< I think people won't mind paying up as long as the process of bleeding them is not so tedious.

wag kasi madaming suot na bling bling pag nasa airport para di halatang uber rich ka.  :harhar:

Quote
France has  Socialist leanings, right? One thing I remember why I didn't want to be in a socialist country( aside from I'd like to travel freely and not ask for the dispensation of the gov't or to simply hold my own passport<high school lang), is that as you get more income=your tax rate goes higher. Just one way to try to impose the classless society( high school sabi ko nga) by inhibiting the capitalist greed and redistributing the wealth.

Anyway, the uber rich can take care of themselves. They can move to Singapore or Switzerland. They have offshore accounts. They buy new cars all the time on company expense. They also donate for the tax credit/rebate. They have a stable of accountants to find ways to minimize taxes, etc.  They get cozy with the administration in a fun way  :)

So do you agree or disagree with me?


freefront

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Reply #6 on: Jun 11, 2014, 12:15 AM
 

 u think the kinauukulan would even bother to listen?

I'll top that with-why are the minimum wage earners not making any noise?

Quote
wag kasi madaming suot na bling bling pag nasa airport para di halatang uber rich ka.  :harhar:

I don't do bling. Not practical in my work. Easier to filter people who are worthy of my time#sticks my nose up in the air and sniffs   :hihi:

Quote
So do you agree or disagree with me?

Not entirely on both counts. Why discourage people who are capable of generating tremendous wealth from doing what they are really good at? Then again, how can we pry the moolah from their basement vaults or make them take corporate responsibility very seriously before they start sitting on wheelchairs? How about some basketball teams  :D

For example: It bugged me for a long time that SM North Edsa caused a bottleneck of traffic in that part of the Metro. Management took a long time building an overpass and terminals to make it easier for people to go and worship errr..... shop. Twenty years, was it?
[/quote]

Wishful thinking. If I had the capacity to make changes, I'll lobby for the tax exemption. This math I can do easily: more disposable income=more money for me.


vicces

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Reply #7 on: Jun 11, 2014, 10:06 AM

I'll top that with-why are the minimum wage earners not making any noise?
but they do make noise! hindi mo lang pinapansin, do these sound familiar: bwisit mga nagrarally na yan, nakakaperwisyo sa trapik, di na lang sila magtrabaho ng maigi para umasenso kesa puro reklamo! :taaskilay:

Quote
I don't do bling. Not practical in my work. Easier to filter people who are worthy of my time#sticks my nose up in the air and sniffs   :hihi:
tas may taga-payong ka kahit san ka pumunta. boom!

Quote
Not entirely on both counts. Why discourage people who are capable of generating tremendous wealth from doing what they are really good at? Then again, how can we pry the moolah from their basement vaults or make them take corporate responsibility very seriously before they start sitting on wheelchairs? How about some basketball teams  :D
not so much to discourage or punish, generating wealth, but to discourage greed. if you are good with what you do and you love what you do, money becomes secondary, supposedly. isnt that what warren buffett is doing? hes got more than enough money but becoz he loves hunting for undervalued companies he keeps at it and keeps multiplying his wealth in the process. for our most wealthy, lalo ung lapit na madedz, hindi pa ba makukuntento sa P1B-5B ( depends on what will be the threshold for "more than enough"). aanhin nila yun if not for greed and vanity?

and its also not about establshing a classless regime, anjan pa rin naman ang mga nanlilimahid na hampaslupa sa payatas at jeje ng quiapo at socialites ng dasma village. mas mabigat lang ung papasanin ni dasma boy tutal naka porsche naman sya, si payatas maglalakad lang.. parang "he aint heavy, he's my brother" ang drama. :P

Quote
Wishful thinking. If I had the capacity to make changes, I'll lobby for the tax exemption. This math I can do easily: more disposable income=more money for me.
see, even your good deed is based on selfish motives.. moderate your greed, boss. :P


freefront

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Reply #8 on: Jun 12, 2014, 03:10 AM
but they do make noise! hindi mo lang pinapansin, do these sound familiar: bwisit mga nagrarally na yan, nakakaperwisyo sa trapik, di na lang sila magtrabaho ng maigi para umasenso kesa puro reklamo! :taaskilay: 

Because their method is so very '80's. They couldn't even muster a respectable mass for a mass rally. IMO, they should get a consultant on what effective language to use. They didn't notice that a lot of stuff became hot topic in facebook alone?

Quote
not so much to discourage or punish, generating wealth, but to discourage greed. if you are good with what you do and you love what you do, money becomes secondary, supposedly. isnt that what warren buffett is doing? hes got more than enough money but becoz he loves hunting for undervalued companies he keeps at it and keeps multiplying his wealth in the process. for our most wealthy, lalo ung lapit na madedz, hindi pa ba makukuntento sa P1B-5B ( depends on what will be the threshold for "more than enough"). aanhin nila yun if not for greed and vanity?

and its also not about establshing a classless regime, anjan pa rin naman ang mga nanlilimahid na hampaslupa sa payatas at jeje ng quiapo at socialites ng dasma village. mas mabigat lang ung papasanin ni dasma boy tutal naka porsche naman sya, si payatas maglalakad lang.. parang "he aint heavy, he's my brother" ang drama. :P

Please. Anybody who has read The Book would know that a classless society is never gonna happen. Even if you remove religion to deny that assumption---it's not gonna happen. In fact, it didn't. Namatay na si Fidel at Kim- the hypocrites!- still not gonna happen.The thing is to make the so-called progress inclusive. Even the hampas lupa will move up to take the place of the elevated patay-gutom, and so on. Giving won't hurt too much and there'll be more grace to go around.

Besides, after all the taxes imposed on those billions from initial capital to inheritance tax- somebody once said taxes can go as high as 70% Hindi nga lang biglaan and that country ay malakas ang welfare system.

Instead of passing the money to the gov't as taxes to be re-distributed to the masses( daw)---just let the masses handle their own distribution. They earned it. The hard way, even.

Quote
see, even your good deed is based on selfish motives.. moderate your greed, boss. :P

Nakakapagod din kasi. Sometimes, I'd like to be on the opposite side of the "electives" list. Like, please "elect" to pay me in 3 mos. time and not 3 years? Thanks!


vicces

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Reply #9 on: Jun 12, 2014, 10:00 AM
Quote
Besides, after all the taxes imposed on those billions from initial capital to inheritance tax- somebody once said taxes can go as high as 70% Hindi nga lang biglaan and that country ay malakas ang welfare system.

Instead of passing the money to the gov't as taxes to be re-distributed to the masses( daw)---just let the masses handle their own distribution. They earned it. The hard way, even.

^That is how you trump a tax proposal. you got me cornered, again. well played epep. :cool:

an increase in tax revenue do not necessarily translate into more social benefits and better services for the poor, not in our country na madaming dadaanan na bulsa at padulas bago marating ang maralita. we circle back to bulok na sistema na mahirap pagkatiwalaan... ayawan na nga lang! :duh:
« Last Edit: Jun 12, 2014, 10:01 AM by vicces »


mayareineg

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Reply #10 on: Aug 10, 2017, 02:24 PM
I think that this topic should be further talked about by the government. Because, like before hindi rin papayag ang iba na makinabang yung mga hindi nagbabayad ng tax sa mga infrastructure at benefits na ang pondo ay nanggagaling sa tax.


SamanthaB

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Reply #11 on: Aug 06, 2018, 11:35 AM
Employees who are under the minimum wage category are said to be exempted from income taxes regardless if the total income for the entire year goes above 250,000.00.  Workers who earn 21,000.00 and below will also not have any deductions that pertains to any taxes.

Kindly correct me if I'm wrong.


wilch23

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Reply #12 on: Aug 14, 2018, 01:45 PM
The scenario you're trying to portray cannot exist.
Minimum wage earner makes less than 250,000.00 per year.
So all minimum wage earners are exempt from income tax, so is everyone else earning an annual compensation of 250,000.00 or less.


Jugrel

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Reply #13 on: May 22, 2019, 07:20 PM
I think its a good strategy for distributing the national financial burden amongst the marginal income earners and the wealthy citizens. Its not like discouraging the rich from earning more, but rather encouraging them to work harder to support the country. lol. This sounds really funny though


Spellstalker

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Reply #14 on: May 23, 2019, 01:03 AM
I think all this is just but wishful thinking, and it can not work in a real life situation. In the first place, it will be very unfair to the hard-working guys who have struggled their way to the top, only to shoulder the burdens of those who relax and do not care about supporting the country. If anything, it will just make the poor poorer since they wont feel the need to work harder. Some people will even deliberately be comfortable with marginal income, just to avoid taxes


 


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