Do you know who your congressman is? Have you talked to any of the senators you have elected? Let me give you 8 reasons to meet with your legislators so you can help me make sure that my ambitious proposal for our taxpayers can be passed into law before PNoy steps down or continues for another six more years?
Here’s my proposal for a fair income tax table exclusive for employees.
|Not over P100,000||Exempt|
|Over P100,000 but not over P250,000||P5,000 + 5% of theexcess over P100,000|
|Over P250,000 but not over P500,000||P12,500 + 10% of theexcess over P250,000|
|Over P500,000 but not over P1,000,000||P37,500 + 15% of theexcess over P500,000|
|Over P1,000,000 but not over P2,500,000||P112,500 + 20% of theexcess over P1,000,000|
|Over P2,500,000 but not over P5,000,000||P412,500 + 25% of theexcess over P2,500,000|
|Over P5,000,000||P1,037,500 + 30% of theexcess over P5,000,000|
If this is considered, a regular employee earning P30,000 monthly salary will only have to pay P18,500 income tax from the P68,000 he would have to currently pay under the outdated and outrageously burdensome tax rates. This will not compromise our tax collections as income tax from employees is only less than 10% of the 60% collections from income tax, or roughly 6% of the total collections. Without PDAF or DAP, I don’t this will be a concern.
So, here are the 8 reasons or things you need to lobby to your congressmen:
We need to protect families, which is the basic unit of our society. By removing the ceiling of additional exemption for dependents and even increasing the additional exemption per dependent, those families with more than four children will get tax incentives and more funds to support their children.
Working hard is never enough to enjoy a decent living in our country. Our skilled laborers and school dropouts always end up getting minimum wage, if not lower. And those who are smart enough end up working for smarter companies that would not give additional benefits than those required by law.
Worst, those who are given more benefits and bonuses are subjected to higher tax rates as it will be added to their gross compensation income. We need to give a breathing space to our employees for them to get more from their hard earned money. They have been the most honest taxpayers since the start. They complain, almost all the time, but they are never remiss of their duty to pay taxes. They need a break.
Cost of consumer goods must be put down to make it more affordable for the greater majority. And lowering VAT or exempting some of the goods will greatly help our people.
Anyway, those who can afford these luxury goods definitely earn more than regular employees. Also, this will cover for any potential revenue losses brought by lowering income tax rates or increasing personal and additional exemption for employees.
To know more about this advocacy for genuine tax reform, come to the INTEGRITY FORUM on August 20, 2014, organized by the Integrity Initiative, Makati Business Club, and European Chamber of Commerce of the Philippines. Email email@example.com or call 622-7720.