Topic: TRAIN Law

Issue: Implementing of the tax-reform law by President Rodrigo Roa Duterte.

 Stand: In favor

Claims: Gives our Government Additional Revenues, Gives us more Benefits, and Pushes us to Save Money.

 Thesis Statement: The new tax reform law should be implemented for it gives our government additional revenues, gives us more benefits and pushes us to save money

Last December 19, 2017, President Rodrigo Roa Duterte signed the Tax Reformation for Acceleration and Inclusion (TRAIN) Law. It is the first tax reform package for a fairer and simpler system for tax to us Filipinos and was effective on the first day of 2018. Many changes and adjustments happened but this law could change our nation to achieve better status. The TRAIN will provide hefty income tax cuts for majority of Filipino taxpayers while raising additional funds to help support the government’s accelerated spending on its “Build, Build, Build” and social services programs. This tax reform package corrects a longstanding inequity of the tax system by reducing personal income taxes for 99 percent of taxpayers, thereby giving them the much needed relief after 20 years of non-adjustment of the tax rates and brackets. This law should be supported for it gives our government additional revenues, gives us more benefits and pushes us to save money.

What are the claims that support the TRAIN Law?

1. It gives our government additional revenues.

Even as the government slashed personal income tax rates, revenue collections are expected to breach the P4-trillion mark by 2022 with the help of new or higher taxes imposed on consumption under the Tax Reform for Acceleration and Inclusion (Train) Act. Department of Finance (DOF) data showed that incorporating the Train as well as President Rodrigo Duterte’s veto message in the new tax measure will bring total tax and non-tax revenues this year to P2.806 trillion, equivalent to 16 percent of gross domestic product (GDP). It means that every year, the budget of our country becomes bigger and bigger that our government can have additional revenues for the improvement of the different government sectors in our country. Having more means giving more which is very beneficial for us citizens and to solve the most pronounced problems of our nation facing for such a long time.

2. It gives us more benefits.

The tax reform law which is now being implemented will benefit everyone, including the poor. Given that our government has additional revenues can give us many benefits. Our country will be able to help us on our needs like the services they give for all of us. We can have more services in terms of health, education, security, and economic. Having them can make our country compete globally. Moreover, workers can have increased salaries. Salaries that were once deducted 5% to 32% in tax rate now have 0% tax deduction from 2018 and beyond. Tax exemption includes the mandated 13th month bonus and other bonuses. This means every employee can now take home more than they did the previous years. But since everything is a give-and-take process, some goods will be priced higher from now on. Also, the compliance of tax will become spimler. Simplified tax filing and payment process is expected as workers with an annual salary of P250,000 will be exempted from tax starting this year. This means workers who fall in this bracket will now no longer have to file income tax returns (ITR). Self-employed and professionals still have to file their ITRs for record and monitoring purposes of the Bureau of Internal Revenue (BIR). In compliance also to this simplification, BIR will also cut the current 12 pages of the ITR to four pages. And lastly our government promises help. The government has promised a P200-a-month conditional cash transfer to poor families to cushion the impact of the law to the poor. For the next two years this will be increased to P300 a month.

3. It pushes us to save money.

It’s a fact that the signing of the TRAIN Law means the Filipinos will start to feel the effects of it just like the increase of the cost in market. However, it can be a way for us Filipinos to embrace change. Private car owners will not feel the effect of the Php3.00/liter increase in gasoline. Why? Because filling up your gas tank with 60 liters of fuel will only translate to Php180 additional cost as a result of the TRAIN implementation. Increased fuel price will make you think twice about those unnecessary joyrides. Hopefully this translates to less pollution and traffic. If you plan to buy a car and you’re complaining about the higher vehicle prices because of the excise taxes, then maybe you need to think twice about buying that car. Maybe you can’t afford it. Or if you badly need a car then perhaps a Mitsubishi Mirage can already serve the purpose. Besides, the terrible traffic won’t require you to have a powerful car engine anyway. Overall, the improved purchasing power of Filipino workers as a result of the tax reform law will provide flexibility to cut down on unnecessary spending and allow people to save more. This could mean less spending on unnecessary stuffs, soft drinks, cigarettes, alcohol and other vices.

Let’s give this first tax reform package a chance to succeed. It is intended to rise around Php100billion additional revenues for the government. The second tax package aims to raise more revenues, implement more fair tax policies, and perhaps refine any imperfections in the first package. It is targeted to be passed this coming March. The government deserves all the support it can get from its own citizens. The massive infrastructure spending cannot be done for free nor can it be financed only through loans. So we have to do our share in nation-building. At least we have a government that implements new tax policies with the welfare of the ordinary Filipino worker in mind. Drug problem and criminality is down. The economy is doing well. Stock market at all-time highs. The currency is stable. And the ordinary Filipino workers are now happy. I personally give credit to the strong decisive leadership of President Rodrigo Roa Duterte for all the good things that are happening in our country.

References:

De Vera, B. (2018). Gov’t revenue seen to surpass P4-T mark by 2022 under TRAIN law. Retrieved February 25, 2018, http://business.inquirer.net/243870/govt-revenue-seen-surpass-p4-t-mark-2022-train-law

Maramara, K. (2018). Here’s How the TRAIN Law Will Affect Everyone. Retrieved February 25, 2018, http://8list.ph/heres-how-the-train-law-will-affect-everyone/2/

Roque, C. (2018). TRAIN law benefits everyone, including poor. Retrieved February 25, 2018, http://conceptnewscentral.com/index.php/2018/01/03/train-law-benefits-everyone-including-poor-roque/