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It's Job Providers That Produce Taxes, NOT Taxes That Produce Job Providers!


I was thinking about some ABiaS-CBN apologists who brag about the taxes paid by the celebrities. Coconuts Martin is indeed one of the top taxpapers of the Philippines but that doesn't excuse ABiaS-CBN from not complying with the government franchise code. For those who are defending the taxes of the celebrities then I wonder do they understand the BASIC cycle of taxes and businesses?

Do taxes produce job providers or do job providers produce taxes? It would be very important to ask that question. Some people think that taxes produce jobs when it's the other way around. Do you even know the definition of tax? Taxes are money derived from REVENUES from the citizen to fund the government for its operations. So where does the government get its taxes? Where does the Bureau of Internal Revenue (BIR) get its taxes or do tax mapping? Isn't it that they get the taxes paid through job-producing companies? Even if people with income up to PHP 250,000.00 are now tax-exempt - their employers are still paying income taxes. When people who are tax-exempt buy something with an EXCISE TAX then the jobs still produced the taxes. When tax-exempt people buy something from a business then that would eventually accumulate into taxable income. An ongoing business will earn much more than the employees that it hires. It's all about businesses that give the government the necessary revenues in the form of taxes.

The idea that taxes produce job providers for people is stupid. The source of revenues for the BIR are the taxpayers. Did the BIR produce the job-producing companies or are they paid by the job-producing companies? None of the companies are established by the BIR. Rather, the BIR gets the necessary tax money for the government from the companies. The companies pay the BIR to finance the government's operations. Businesses need the government to keep the country in order. The government needs businesses in order to finance it. It's what I'd call give-and-take relationship between taxpayers and tax collectors. Also, doesn't the government itself also purchase from private companies for its operations? They would hire from private security companies, buy stuff they need from private companies, and private construction companies are hired for building public infrastructures.

A lack of understanding of job generation is why so many Filipinos have long fought against reforms that could've benefited them. Why I advocate for foreign direct investment (FDI) in the Philippines is because they would add up as job providers. The poor excuse that only FDIs will get rich is invalid. If FDIs will get rich in the Philippines then they must pay that tax depending on how much they earn. Do business abroad and you must pay that country tax based on your income there or risk getting charged with tax evasion, imprisonment, or even blacklisting. FDIs will have to pay all necessary taxes if they want to continue enriching themselves in the Philippines. FDIs themselves would provide jobs which they themselves produce the taxes needed for the Philippines. Only if more Filipinos will understand how job generation is produced. 

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