I may not be an economist but it's time to think about tax reformation. There's one problem of progressive income taxation is that it may actually discourage progress. What goes wrong? Based on three brothers illustration this is what happens. The problem with the current revenue system of the Philippines is that it actually rewards laziness and punishes diligence. In short, when you earn more then you should pay a higher rate which is in contrast to lower tax rates.
The taxation system of Singapore and Malaysia is where the highest only reaches to 2% and 11%. If they say that reducing the current tax rate of the Philippines will decrease revenue then think again. You can think of the issue that one valid reason why the Philippines has a huge population of professional tax evaders is because of unjust tax policies.
Think about the reality. Some businessmen are wired to earn more money for whatever reasons. The problem of the Philippines is the desire to establish the fabled …
The taxation system of Singapore and Malaysia is where the highest only reaches to 2% and 11%. If they say that reducing the current tax rate of the Philippines will decrease revenue then think again. You can think of the issue that one valid reason why the Philippines has a huge population of professional tax evaders is because of unjust tax policies.
Think about the reality. Some businessmen are wired to earn more money for whatever reasons. The problem of the Philippines is the desire to establish the fabled …
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