Awareness of the Minimum Income Earners of Barangay II-Poblacion

Alaminos, Laguna to TRAIN Law

In partial fulfilment of the Requirements for the Second Semester of Grade 12 Research

Project

Biglete, Bettina

Gonzaga, Joshen Mae

Latayan, Jyohanne Sophia

Romasanta, Michelle

Valencia, Brigette Irish

Submitted to

Mrs. Ginaline A. Untivero

Laguna College

2019
 LAGUNA COLLEGE

Grade 12 Students of Laguna College

San Pablo City, Laguna

Approval Sheet

A STUDY ON AWARENESS OF THE MINIMUM INCOME EARNERS OF

BARANGAY II-POBLACION ALAMINOS, LAGUNA TO TRAIN LAW

In partial fulfilment of the requirements for the Grade 12 students of Laguna

College, this research paper entitled, “Awareness of the minimum income earners of

Barangay II-Poblacion Alaminos, Laguna to TRAIN Law” has been prepared and

submitted by Bettina A. Biglete, Joshen Mae C. Gonzaga, Jyohanne Sophia J. Latayan,

Michelle Romasanta, and Brigette Irish L. Valencia and it is recommended for approval

and acceptance.

_____________________________

MRS. GINALINE A. UNTIVERO

Research Adviser

Approved and accepted in partial fulfilment of the requirements for the Grade 12

students in Laguna College.

___________________________

MS. AURORA S. BALDRIAS

School Principal

ii
 ABSTRACT

Bettina A. Biglete

Joshen Mae C. Gonzaga

Jyohanne Sophia J. Latayan

Michelle Romasanta

Brigette Irish L. Valencia

A Study on Awareness of the minimum income earners of Barangay II-Poblacion

Alaminos, Laguna to TRAIN Law

(Under the direction of Mrs. Ginaline A. Untivero)

The purpose of this study was to determine the awareness, opinions, and

perceptions of the minimum income earners of Barangay II-Poblacion Alaminos, Laguna

to TRAIN Law. This study is particularly significant to understand the TRAIN Law

more. The subjects of this study were the minimum income earners of Barangay II-

Poblacion Alaminos, Laguna for the year 2019. A research-made survey questionnaire

was prepared for this study and modified under the supervision of the research instructor.

The questionnaire was randomly distributed to the residents of Barangay II-Poblacion

iii
Alaminos, Laguna. After the tally was done, they only picked those who were minimum

income earners. After the finalization of the tallies and analysis, it was shown that there

was a large portion of the minimum income earners who were not in favor of the TRAIN

Law. It implied that the higher percentage of those who were not in favor of TRAIN Law,

the more minimum income earners suffer.

iv
 ACKNOWLEDGEMENT

Immeasurable appreciation and deepest gratitude for the help and support are

extended to the following persons who in one way or another have contributed in making

this study successful:

To Almighty God, for giving the researchers the strength, wisdom, motivation,

and guidance to finish their research study.

To Mrs. Ginaline A. Untivero, the researchers’ research instructor, for her

genuine concern, encouragement, patience, and guidance and whose expertise and

knowledge she generously shared with us.

To the barangay officials in Barangay II-Poblacion Alaminos, Laguna, for

giving the researchers the permission to have access to the residents’ information.

To the respondents and respondents’ family, the researchers are very thankful

for being patient and understanding, for giving honest answers, and for welcoming the

researchers in their homes.

To the researchers’ grammarian, Mr. Michael Gregory D. Denosta, for his

effort and time in checking the mechanics and format of the study.

Lastly, to the researchers’ parents, for allowing the researchers to do their

research, for providing them funds and understanding their situation, for allowing them to

work outside the school during non-school days, and for encouraging them through the

study.

v
 TABLE OF CONTENTS

TITLE …………………………………………………………………………………… i

APPROVAL SHEET …………………………………………………………………...ii

ABSTRACT …………………………………...………………………………………..iii

ACKNOWLEDGEMENT……………………………………………………………….v

TABLE OF CONTENTS …………………………...………………………………….vi

LIST OF TABLES …………………………………………………………………….viii

LIST OF FIGURES ………………………………………...…………………………..ix

CHAPTER I – INTRODUCTION

Background of the study …………………………………..…………………….. 1

Statement of the Problem ………………………………...……………………… 4

Conceptual Framework ………………………………………………………..… 5

Hypothesis ………………………………………………………………………… 6

Significance of the study ………………………………………………………..... 6

Scope and limitations …………………………………………………………….. 7

CHAPTER II – REVIEW OF RELATED LITERATURE

Local Literature …………………………...……………………………………....9

Foreign Literature …………………………...…………………………………. 26

vi
CHAPTER III – METHODOLOGY

Research Design ……………………………………………………………… 32

Research Instruments ………………………………………………………... 32

Subjects of the study …………………………………………………………. 33

Sampling Technique …………………………………………………………. 33

Research Procedure………………………………………………………….. 34

Data Analysis ………………………………………...………………………. 35

CHAPTER IV- RESULTS AND DISCUSSION …………………………………….37

CHAPTER V- SUMMARY, CONCLUSION, AND RECOMMENDATION

Summary …………………………………………………………………………59

Conclusion ………………………………………………………………………..60
Recommendation ………………………………………………………………...62

APPENDIX …………………………………………………………………………..64

BIBLIOGRAPHY …………………………………………………………………...69

vii
 LIST OF TABLES

TABLES TITLE PAGE NUMBER

1 Conceptual framework………………………………...5

2 Old rates on cigarettes…………………………………12

2.1 New rates on cigarettes………………………………..12

3 Old rates on mineral products………………………...13

3.1 New tax rates on mineral products……………………13

3.2 Comparison old and new tax rate on

Other mineral products………………………………..13

4 Combined daily income of minimum

Income earners………………………………………..40

viii
 LIST OF FIGURES

FIGURES TITLES PAGE NUMBER

1 Respondent’s Gender Profile……………………38
2 Respondent’s Occupation……………………….39
3 Respondents’ family size………………………..41
4 Respondents’ number of family
members earning………………..........................42
5 Awareness of the respondents…………………..43
6 The scale of the respondents’
Awareness……………………………………....44
7 Respondents’ assessment on what
products have increased prices
because of TRAIN Law…………………………45
8 Respondents’ assessment whether
they are in favor of TRAIN Law or not………...46
9 Respondents’ opinion on “TRAIN Law
has a good effect to me” ………………………..47
10 Respondents’ assessment on “We do
not need to increase taxes to improve
infrastructures.” ………………………………...48
11 Respondents’ assessment on “TRAIN
Law is a law that has a good intention in
improving people's lives” ………………………49
12 Minimum income earners response to
“TRAIN Law is a law that just worsen
the daily lives of people especially the

ix
 minimum income earners.” …………………..…..50
13 Respondents’ perception on “TRAIN
Law doesn't really affect our daily
budget.” …………………………………………...51
14 Respondents assessment whether TRAIN
Law affects their budget or not…………………....52
15 Respondents’ assessments on the products
they continuously buy regardless of the
price increase………………………………………53
16 Respondents’ assessment on whether
TRAIN Law improve their daily lifestyle
or not………………………………………………54
17 Respondents’ assessment on “I can tell
that my budget is enough to sustain my
daily needs” ……………………………………….55
18 Respondents’ reaction on “I can tell that
price hike is the cause why I can no longer
purchase a certain product.”……………………….56
19 Respondents’ reaction on “TRAIN Law
increases our budget” ……………………………..57
20 Minimum income earners response to
“Why do you still buy those products?” …………58

x
 CHAPTER I

INTRODUCTION

Background of the Study

People heard such huge numbers of dissatisfactions and mistrust how the general

population's cash gone into squander. However, that changed until January of 2018.

There have been incalculable discourses and trades of refusal to site person's point on the

best way to viably overhaul the Tax reform without prejudice – and to ensure that the

poor population will benefit more of the proposed Tax reform.

Republic Act no.10963 or also known as Tax Reform for Acceleration and

Inclusion (TRAIN) Law was newly implemented in year 2018 at the month of January.

Through this, most Filipino taxpayers will receive huge income tax cuts while additional

funds are being raised in order to help support the government’s expenses on its “Build,

Build, Build” and social services programs. Through the said Law, each Filipino

contributes in financing more foundation and social administrations to annihilate

extraordinary destitution and lessen disparity towards prosperity for all. TRAIN

addresses several weaknesses of the current tax system by bringing down and

streamlining individual pay charges, disentangling domain and contributor's expenses,

growing the Value-added tax (VAT) base, altering oil and car extract imposes, and

presenting extract charge on sugar-sweetened beverages. This tax reform corrects the tax

system’s inequity by decreasing personal income taxes for 99% of taxpayers which gives

them relief after 20 years of no adjustments in tax rates and brackets. In addition, the Tax
reform is not just engaged to how poor can carry on with a wonderful life, since we still

have the white-collar class who work to gain a living. TRAIN is somewhat the answer to

the very long agony of many productive employees.

The TRAIN Law is created to lessen the burden of many Filipino workers, but it

is unavoidable to see situations which are not part of what the government foresee to

happen especially the disadvantageous situation of the law for the minimum wage

earners.

Minimum wage earners are the people who earns a fixed minimum wage by the

Regional Tripartite Wage and Productivity Board (RTWPB) of the Department of Labor

and Employment (DOLE). Each region’s RTWPB are the ones who sets the fixed

minimum wage or wage rates on different region based on various criteria. The wage

rates that they will set in every area will be the one of their bases for tax exclusion from

income tax. Although TRAIN Law was not so explicit in its provisions about the

minimum wage earners; TRAIN Law have a silent provision that minimum wage earners

can take advantage of. A minimum wage earner can sacrifice losing the Minimum Wage

Earner status as long as his income is below the1503 zero (0%) rated Php 250 000.

The minimum wage earners are the general population who gets the most reduced

pay. This incorporates agriculturists, fishermen, open vehicle drivers, merchants and

other self-employed people. TRAIN Law, however, increases the tax in car owners,

taxable documents (documentary stamp taxes or DST) and higher threshold for value-

added tax. The execution of the TRAIN Law will influence the minimum wage earners as

well as the cost of few items. There is a price increase in cigarette and sugar-filled

beverages. This items will cost higher than its real cost as the minimum wage earners will

2
be exempted by the Law and their tax will be pass on to few items and that will end up

being an issue on how they will adapt on the specific changes that brought by the TRAIN

Law and on how they will manage their requirements notwithstanding of the low pay that

they are getting. While the said Law increases the cost of goods and commodities, you

will enjoy the higher take-home pay. Minimum wage earners are not much affected of the

lifting of tax payments for they are not obliged to pay taxes, yet they are greatly affected

by the rising costs of many items in the market. Their annual income does not increase or

decrease yet the cost of their living has gotten expensive.

For the workers’ group Associated Labor Union (ALU), the implementation of

the Tax Reform for Acceleration and Inclusion (TRAIN) Law has worsen the minimum

wage earners’ situation by being poorer than before. According to Alan Tanjusay, ALU

spokesman, the information from the National Wages and Productivity Commission

(NWPC) indicated that in the country’s 17 regions, the total average daily nominal

minimum wage of P329.53 is now worth P210.

According to the 2015 Census, the population of Barangay II, also known as

Poblacion, in the municipality of Alaminos, Laguna was 2,804 which is 5.86% of

Alaminos’ total population. The current population of the Barangay II-Poblacion

Alaminos, Laguna is 3, 340 and has a household of 653. The minimum wage in this

barangay is ₱ 350.

3
Statement of the Problem

The focus of the study is to determine the awareness of minimum income earners

of Barangay II-Poblacion Alaminos, Laguna to TRAIN Law. The following questions

presented helped the researchers to address how aware are the minimum income earners

to TRAIN Law.

1) What were the demographic profile of the respondents according to:

a. Gender

b. Occupation

c. Daily income (non-tax payer)

d. Family size

e. Number of family members employed

2) How aware were the respondents about the TRAIN Law?

3) What did the respondents think about TRAIN Law?

4) How did Train Law affect minimum income earners in their everyday

lives?

a. Buying products

b. Daily Income

c. Budgeting

5) Why did the respondents still buy products or pay services that have

increased in price?

4
Conceptual Framework

Table 1

INPUT PROCESS OUTPUT

>Demographic profile of Administration of questions A paper that will be discussing

respondents in terms of: concerning the awareness of about how aware were the

a. Gender minimum income earners to minimum income earners to

b. Occupation TRAIN Law. the Tax Reform for

c. Daily income Acceleration and Inclusion

(non-tax payer) (TRAIN) Law.

d. Family size

e. Number of

family

members

employed

> Awareness of the

respondents to TRAIN Law

On the table given above, the researchers have included in the inputs the

demographic profile of the respondents such as gender, occupation, daily income, family

5
size, and number of family members employed. The awareness of the respondent are also

included.

On the second column, the process of conducting the study and the administration

of questions are used.

Lastly, in the third column, the output contains the final paper wherein researchers

have discussed the awareness of minimum income earners to Tax Reform for

Acceleration and inclusion (TRAIN) Law.

Hypothesis

The researchers assumed that the percentage of the minimum income earners who

are not aware is greater than those who are aware, then there are more misconceptions

about TRAIN Law.

Significance of the Study

This study will contribute to the improvement of the Law not only for the

minimum income earners but also to all citizens of this country. The result of this study

will be one of the references of how TRAIN Law affects minimum income earners in a

certain area in Laguna. The people who will benefit from this study are:

1. Community of the respondents

Community of the respondents will be the first ones who will benefit from

this study.

6
 2. Barangay II-Poblacion Alaminos, Laguna’s officials

Through this study, the barangay officials of the barangay II-Poblacion

Alaminos, Laguna will come up ideas for their future programs.

3. General public

General public will gain knowledge through this study.

4. Future researchers.

Future researchers with the same or related topic can use this study as their

reference.

Scope and Limitation

In this study, the awareness of the minimum income earners about the TRAIN

Law are the information that was collected and was discussed by the researchers. They

have tackled the awareness of the minimum income earners to the said Law. Researchers

had carefully selected minimum income earners as the respondent of the study that took

place in Barangay II-Poblacion Alaminos, Laguna. The place that was mentioned was

within the reach of the researchers and therefore had an easy focus on said place.

However, this study has its limitations.

The study that has been conducted exempts the people who are not included in the

category of minimum income earners. Also, other than the Barangay of II-Poblacion in

Alaminos, Laguna were not part of the scope. With the researchers still studying, they

were given only a limited time to conduct the study. This study was conducted during the

7
academic year 2018-2019. The researchers conducted the survey from morning until

afternoon within a time span of 3 weeks.

Definition of terms

1. Minimum Income Earners- people who receives the average salary

2. Minimum income – The Barangay II-Poblacion Alaminos, Laguna's minimum

income is ₱350

𝑡𝑜𝑡𝑎𝑙 𝑑𝑎𝑖𝑙𝑦 𝑖𝑛𝑐𝑜𝑚𝑒

𝑡𝑜𝑡𝑎𝑙 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑒𝑎𝑟𝑛𝑒𝑟𝑠 𝑖𝑛 𝑎 𝑓𝑎𝑚𝑖𝑙𝑦

3. Take-home pay- what an employee receives after working

8
 Chapter II

Review of Related Literature

This chapter includes the ideas, generalization, or conclusions, methodologies and

others. Those that were included in this chapter helped in familiarizing information that

was relevant and similar to the present study.

Local Literature

Tax Reform Acceleration and Inclusion (TRAIN) Law, also known as Republic

Act No. 10963 was signed by President Rodrigo Roa Duterte last December 19, 2017 in

Malacanang.

TRAIN Law exempts the individuals who gain under 250,000 every year from

income tax, which spells a greater salary for the minimum wage earners. As indicated by

the Department of Finance, the law is relied upon to help 99% of Filipino families due to

the exception to individual income tax. This is combined with an expansion in excise tax,

or charges on items that uses sugar, salt, oil, and coal. This makes ready for even the

most fundamental items to blow up. The expense of transportation is likewise anticipated

that would expand given the oil value climbs that will follow the passing of the TRAIN

Law.

The Tax Reform for Acceleration and Inclusion (TRAIN) Law aims to enrich the

economy of the country by promoting investments and create jobs but also aspires to

improve the lives of the citizens and reduce poverty. It also aims to elevate proceeds that
will fund the project of the President which is "Build, Build, Build" that will nourish the

growth of the country.

Republic Act no. 10963 rebuilds the personal income tax (PIT) plan, with discrete

calendar for compensation income earners (CIEs), absolutely self-employed people and

professionals (SEPs) whose gross sales and other non-working pay do not surpass the

Value-Added Tax (VAT) edge of ₱3 million and mixed pay workers.

Although TRAIN Law changed almost all, there are some that retain from tax

exemption. Minimum wage earners' income remains exempted from tax. Tax of de

minimis benefits as well as the non-taxability of mandatory contributions remains

exempted. Republic Act 10963 retains the VAT-exempt of raw agricultural and marine

products, educational services, health services, cooperatives, senior citizens and persons

with disabilities.

Republic Act 10963 imposes ad valorem tax rates in the excise tax on

automobiles. Vehicles that are used with electric energy also called hybrid vehicles in

combination with gasoline, diesel or any other motive power shall be subject to 50%

excise tax. Only electric vehicles and pick-ups are exempted from excise tax.

For the period 2018 to 2020, the planned increment in the excise charge on fuel

will be suspended for 3 months preceding the expansion of the month when the normal

Dubai crude oil cost based on Mean of Platts Singapore (MOPS) comes to or surpasses

US$ 80 for each barrel.

Excise Tax on sweetened beverages under R.A. 10963 or the Train Law is P6.00

per liter of volume capacity on sweetened beverages using purely caloric sweeteners, and

10
purely non-caloric sweeteners, or a mix of caloric and non-caloric sweeteners. Then,

P12.00 per liter of volume capacity on sweetened beverages using purely high fructose

corn syrup or in combination with any caloric or non-caloric sweetener.

Sweetened beverages that are excluded from this tax are the ones using purely

coconut sap sugar and purely steviol glycosides.

Beverages covered are sweetened juice drinks, sweetened tea, flavored water, all

carbonated beverages, energy drinks, sports drinks, cereal beverages, grain beverages,

milk, juice, tea, coffee, other non-alcoholic beverages that contain added sugar. While the

beverages excluded are plain milk, infant formula milk, powdered milk, meal

replacement and medically-indicated beverages, ground coffee, instant soluble coffee and

pre-packaged powdered coffee products, 100% natural vegetable juices, and 100%

natural fruit juices.

TRAIN Law expands the excise charge rates on cigarettes packed by hand and

packed by machine. It expands the excise charge rate on local or imported coal and coke

in 3 tranches starting January of 1, 2018 to January 1, 2020. It expands the excise charge

rate on other mineral products.

11
 Table 2

Old tax rates on cigarettes

The table shows the old tax rates on cigarette. Notice that from 2013 onwards, tax

rates for cigarettes packed by head and machine increases. In 2018, it will increase by 4%

every year thereafter.

Table 2.1

New tax rates on cigarettes

The table shows the tax rates on cigarette from 2018 onwards. Cigarettes packed

by hand and machine increases every 2 years from 2018 to 2022. It will increase by 4%

in 2024 every year thereafter.

12
 Table 3

Old tax rate on mineral products

The data above indicates the old tax rate on mineral products which are coal and

coke are P10.00 per metric ton.

Table 3.1

New tax rate on mineral products

Table 2.1 shows the changes in price of mineral products. In year 2018, the cost

of coal and coke is P50.00 per metric ton and by year 2019, it goes up to P100.00 per

metric ton. The cost is expected to rise by P50.00, a total of P150.00, in year 2020.

Table 3.2

Comparison of old and new tax rate on other mineral products

13
 The table above shows the comparison of old tax rate and new tax rate for mineral

products. All the minerals doubled its tax rate. The indigenous petroleum has the highest

old tax rate with 3% and 6%, respectively.

According to Ortega (2018) in her article entitled "TRAIN: A new wave of war

against the poor", the Tax Reform for Acceleration and Inclusion (TRAIN) Law will

greatly affect the citizens of middle and poor sectors as they will pay more taxes to the

government. The major element of Republic Act No. 10963 is to reduce personal income

taxes. Citizens with salary of P 250,000 or less are exempted from income tax while

those with salary of above P 250,000 will pay a tax rate of 20 to 35 percent starting this

year and 15 to 35 percent on year 2023. Furthermore, it will reduce the estate tax, donor's

tax and value added tax (VAT) but a higher tax will be added on automobiles, cigarettes,

manufactured oils (petroleum products), mineral products, passive incomes and

document taxes. While TRAIN Law cuts some taxes, it also increases taxes on various

products. The minimum wage earners will have to pay a higher price on their

commodities and necessities for their daily living. Prices of goods even without covered

by the excise tax are increasing since the TRAIN Law is being implemented. The

Department of Social Welfare and Development implements a program that will give P

200 per month per poor family this year and will increase to P 300 in 2019 and 2020. But

this is not enough to support the poor families having most of the population in our

country. The success of this law is still uncertain, and more people will suffer as the price

of the products increases.

TRAIN Law has the greatest impact on the economy. It will help the economy

grow by 1.3% by 2022. The lower the income tax, the higher household consumption is,

14
that will result to a rapid increase of Gross Domestic Product (GDP). Package 1(another

term for TRAIN Law) will produce about half a million jobs and could improve the

living of 200,000 Filipinos over the next half-decade. It can generate PHP 134 billion. If

at least half of that is funded for infrastructure, 67,000 jobs can be directly generated in

construction, and almost 70,000 jobs can be created in the rest of the economy for a total

of 137,000 jobs. Another good thing about this law is that the increase in inflation is low

and within the target ranges of Bangko Sentral ng Pilipinas (BSP). A raise of 0.42% in

inflation this year is the result of the increase in excise taxes but will swiftly disappear in

succeeding years. Tax reform will be the key to successful projects proposed by the

government for the Filipinos.

Elemia, in her article Duterte’s tax reform: More take-home pay, higher fuel and

auto taxes, state that President Rodrigo Duterte vowed to lower the income tax rates of

Filipino workers. Governance cannot function without the taxes, it is the tool to supply

social services to citizens.

The initial package reforms of Department of Finance (DOF) includes lowering

personal income tax rate and cutback of Value-Added Tax (VAT) exemptions to counter

revenue loss. However, they revised this due to an immediate imposition of high taxes

on fuel and cars. The DOF and the Bangko Sentral ng Pilipinas (BSP) said that the

lowering of income taxes and future increase in taxes paid when purchasing a specific

good would have negligible effect on country’s inflation rate. The BSP expects 3.3%

inflation rate in 2017 and 3% in 2018. According to Guinigundo (2017) in Elemia

(2017),

15
 Why the impact on inflation is muted or moderate or modest is because

the proceeds of the tax initiate will go back in terms of infrastructure,

social spending, and protection of the poor. In short, higher potential of

the economy.”

Philippines currently has the second highest personal income tax rate with 32%

and highest corporate tax with 30% among the Association of Southeast Asian Nations

(ASEAN) countries.

The new proposal seeks to exempt employees who can earn P250,000 or below

annually from income taxes. The 13th month pay of P82,000 and other bonuses will

remain tax free. The ultra-rich will impose a higher rate of 35%.

The Duterte administration has 3 ways not to lower taxes and not have plans to

generate what would be lost: limit VAT exemptions, increase excise taxes on petroleum

products and automobiles. The DOF wants to remove the following exemptions: low-

cost and socialized housing, cooperative, boy scouts and girl scouts, lease of residential

units, and many more. Some senators are against to the DOF’s proposal. Senator Joseph

Victor Ejercito criticized the planned removal for low-cost and socialized housing

because it might lead to more housing backlogs. Senator Juan Miguel Zubiri, however,

questioned the DOF’s removal of tax exemption for cooperatives. The DOF in response

said that it already benefits from other tax exemptions. The government also wanted to

remove the VAT exemption of senior citizens and person with disability (PWD), but it

was criticized. They revised the proposal instead.

16
 The DOF proposed P300 monthly dole out for poor and vulnerable households,

for them not to backlash the changes. They also said that oil excise is a “highly

progressive tax” because those who consume it more will pay more taxes, which is very

costly. The tendency of higher tax for oil is to increase the transportation far and it will

have a strong effect on electricity prices in the poor areas of the country.

According to Dar (2018) in his article entitled "TRAIN translates to better take

home pay, services and job opportunities", Tax Reform for Acceleration and Inclusion

(TRAIN) Law has a small effect on the inflation rate of the Philippines and in fact helped

our countrymen. Antonio Lambino II, Assistant Secretary of Department of Finance,

elucidated during his talk in the "Biyaya ng Pagbabago" at Benguet State University that

people should look more to the TRAIN's benefits than its little effect to inflation rate.

Inflation rate is not much affected by TRAIN Law but is mostly affected by numerous

factors. He said that if TRAIN is to be suspended, inflation will decrease but we are

wasting the benefits that our countrymen are already getting. Increase in the take-home

pay of low income earners and middle income earners with around P12 billion worth of

taxes was caused by TRAIN Law. Infrastructure programs for local communities offering

more than 93,000 jobs was caused by the "Build, Build, Build" program that is under by

TRAIN. Taxes in various products is being used in budgeting health programs and social

benefits. The Unconditional Cash Transfer program will be adding P200 per month for

the beneficiaries of Pantawid Pamilyang Pilipino Program, near-poor households and

indigent senior citizens of the Social Pension Program. He added that the Value-Added

Tax (VAT) of medicines for diabetes and cholesterol will be removed. TRAIN aims to

nourish the growth of our economy and bring progress to every Filipino.

17
 According to Carao (2018) in her article entitled " UP Diliman students slam

‘anti-poor’ TRAIN law”, the UP-people group is now encountering the TRAIN Law in

every meal; costs of sweetened beverages and student meals have gone up, particularly

among the positions of the numerous booths inside the college. Sweetened drinks have

gone up by as much as 5 pesos, and processed foods like sausage and instant noodles are

required to expand by a similar sum in the coming months. Commencing the beginning

of the semester, University of the Philippines-Diliman students held a protest against the

Duterte organization's TRAIN Law for failing to consider the worsening poverty in the

Philippines in a way that they implement neoliberal policies that are unhealthy and not

helpful to the Filipino people’s situation.

Irene Hilario from the League of Filipino Students-UP Diliman stated that TRAIN

Law is only one of the numerous anti-poor approaches that the Duterte organization are

subjecting his constituents to, and that from the beginning, Duterte was questionable

about helping the Filipino individuals. She included that the 'anti-poor' ventures and

projects of the Duterte organization are not for the improvement of the nation, but rather

a profiteering plan of outside organizations.

As per Anakbayan UP Diliman, the collected taxes from the expansion in excise

tax will not reach the Filipino individuals in the way that they should. The cash will go

into outside obligation servicing and into Duterte's “Build, Build, Build” program, which

is required to see a rise in infrastructures, for example, shopping centers and, yet not of

fundamental social administrations such as affordable medical facilities or housing.

Students are also hard pressed to avail of the free educational cost inside state

schools and colleges, for example, UP because of the absence of spending plan. A year

18
ago, Duterte said that the budget for free education will originate from the collected tax

under the TRAIN Law. This announcement was denounced by progressive groups,

saying that the administration pits the interest of students for free education against the

interest of poor Filipinos to manage the cost of essential items.

Kate Raca of Alay Sining states that some portion of the cash gathered from

excise tax will likewise go to Duterte's Martial law and Oplan tokhang, which keep on

asserting lives in the boulevards and to deal human rights infringement against Filipino

individuals.

As indicated by the student groups, they are arranging bigger protests against the

TRAIN Law, and the upcoming jeepney phase out in the coming weeks to show the

organization that with each fascist and neoliberal assault, their battle becomes more

grounded.

According to Villanueva (2018) in his article entitled “TRAIN on its 1st year of

implementation”, policy makers are united in saying that any tax reform measure will

always be met with questions, yet President Duterte’s economic managers were capable

to speak after the first tax reform was marked into law in December 2017. Finance

officials said TRAIN enables more individuals to have a higher salary to spend for their

families.

They said that this change makes the nation's tax system less complex, fairer and

increasingly more efficient since it reduces the general tax burden of poor people and the

white-collar class. To address its effect on government income, excise taxes on fuel were

expanded and new ones were presented for sugar-sweetened beverages (SSB) and on

19
vehicles. Citing a DOF study, finance department officials said the top 10 percent of

Filipino family units who earn about PHP113,000 monthly consume almost 51 percent of

fuel. While the top 1 percent of Filipino family units who earn PHP288,000 and more

monthly consume 13 percent of fuel. Hence, the climb on excise tax impacts more on

family units who earn more. As to excise tax on sugar-sweetened beverages, the DOF

said this is a wellbeing measure focused to dishearten individuals from devouring sugary

beverages that will influence their wellbeing. Improving the Philippine government's

decades-old tax system is the key factor for the Duterte administration’s tax reform

measure since it is focused to fund the government's enormous infrastructure program

called "Build, Build, Build". The present government offers to spend something like a

trillion pesos yearly until the end of its term in 2022 to build vital infrastructure around

the nation to guarantee not just the continued extension on the local economy yet ensure

that development will truly be inclusive. It has recognized 75 priority infrastructure

projects under Better Business Bureau (BBB) and these are focused to be funded through

Official Development Assistance (ODA) loans, which give low-interest and long haul

financing.

According to PIA, in its article "Positive effect of TRAIN Law not immediate -

BTr", the beneficial outcome of Tax Reform for Acceleration and Inclusion (TRAIN)

Law is not quick yet rather medium to long haul. Bureau of Treasury (BTr) Region 10

Officer in Charge - Regional Director Bienvenido V. Esmeralda Jr. clarified during the

Talakayan sa PIA on August 30 that the section of TRAIN Law does not guarantee quick

beneficial outcome but rather medium to long haul. The immediate impact would be the

expansion in costs. From the sum created from this Law, 70 percent will go to the Build

20
program which is a capital resource. He said that Filipinos cannot feel today the

advantage, this capital resource: spans, streets, and so forth. People cannot simply gather

today and spend tomorrow and do not perceive any foundation improvement. Meanwhile,

30 percent of the gathered funds from TRAIN will go to social administrations.

Esmeralda said the accumulation of Bureau of Internal Revenue (BIR) and Bureau of

Customs (BOC) will go to the treasury to subsidize the republic. If the administration

needs cash, at that point we can give, he said. For 2018, the national spending plan is

something like P3.4 trillion however the evaluated income is P2.8 trillion. He clarified

that if the P3.4 trillion will be spent, contrasted with the P2.7 trillion gathering, the

treasurer needs to discover some place to support the equalization or the deficiency. In

June 2018, the national government obligation came to P7.1 trillion. He said that despite

the spending programming, there is always deficit. Among them are increase of fuel cost

on the world market and depreciation of the Philippine peso.

According to Jaymalin (2018) in her article entitled " Minimum wage earners

poorer due to TRAIN – labor group”, the workers’ group Associated Labor Union (ALU)

has claimed that the implementation of the Tax Reform for Acceleration and Inclusion

(TRAIN) Law has worsen the situation of the minimum wage earners and that it made

them poorer than they are before. It said that there are workers who are trying to seek and

search for an immediate action and aide of the government that can help them adjust with

the decrease of their purchasing power ever since the TRAIN Law has took effect this

year in the month of January. According to the ALU spokesman Alan Tanjusay,

21
 Data from the National Wages and Productivity Commission (NWPC)

showed that the total average daily nominal minimum wage of P329.53 in

the country’s 17 regions is now only worth P210.

Tanjusay also said that they have noticed that the gradual decrease of the wage’s

purchasing power has gone down quickly by six (6) percent just within two months. It is

significant for the informal sector workers who earns less than P12,000 a month and for

the minimum wage earners who are receiving less than the same amount.

The daily minimum wage in Manila is P512, which is our country’s highest value

in terms of minimum wage, but it was reduce to P375.29. Meanwhile, the purchasing

power of our country’s lowest minimum pay with the value of P265 a day in the

Autonomous Region in Muslim Mindanao (ARMM) has fell to only P152.12 a day.

Tanjusay also noted that as of the 1st day of March in year 2018, the overall purchasing

power of the workers for a month has reduced to P8,575. Citing data from the Philippines

Statistics Authority (PSA), he pointed out that at least P9,064 will be needed by a family

of five. It is the published standard amount to survive above line in 2015.

Tanjusay called for the help of government and for them to come out with

immediate and quality measures to save workers from falling into a much deeper poverty.

He also states that the workers’ purchasing power can be gradually destroyed further with

the inflation rate hitting three-point nine (3.9) percent by the end of February and is likely

to increase by the end of the month of March. The labor group is persuading the

government to provide a P500 monthly subsidy for the sake of minimum wage earners

and to help them adjust with the unfavorable impact of the rise of inflation rate.

22
 According to the Associated Labor Unions-Trade Union Congress of the

Philippines (ALU-TUCP), it is profoundly stressed over the opposite effect of the Tax

Reform for Acceleration and Inclusion (TRAIN) Law to the individuals of the informal

economy which is part of the economy that is neither burdened, nor checked by the

administration.

ALU-TUCP representative Alan Tanjusay said vendors, fisherfolks, farmers,

public utility vehicle and pedicab (cycle rickshaw) drivers, among others, would confront

more difficult conditions now that the law is implemented. Tanjusay states that:

If not addressed, the brewing social storm would create bigger and wider

poverty among our people. Workers are already burdened with pre-

existing bad conditions and encumbered with traffic congestion and high

cost of living. The unclear, if not inadequate social safety net, will offer no

hope for workers in coping with rising inflation.

More terrible, the labor leader stated, these penniless informal workers might be

compelled to turn to unlawful activities just to have enough intention to live.

The TRAIN Law (Republic Act 10963) exempts the first P250,000 yearly

assessable wage from paying mandatory expenses which means those gaining P21,000

per month would never again need to pay government expenses. It likewise raises the tax

exception for thirteenth month pay and different bonuses to P90,000.

Nonetheless, to make up for loss of income from salary taxes, Filipinos will have

to pay excise tax on sweetened refreshments, and higher excise taxes on oil, car, tobacco,

mining and coal.

23
 The delay of the Tax Reform for Acceleration and Inclusion Law could hinder the

operation of having massive infrastructure and social program that could be of help to

many Filipinos. According to Socioeconomic Planning Secretary Ernesto Pernia, the

TRAIN Law was a success after its implementation and has been beneficial for the

country. In addition, Pernia also mention that the fiscal space has been improved for the

government in funding the "Build, Build, Build" program and other various social

program such as conditional cash transfer (CCT), unconditional cash transfer (UCT), free

tuition in state universities and colleges (SUCs), free irrigation for farmers, and

‘Pantawid Pasada’ cash grants.

According to Pernia, the TRAIN Law should not be abolished. A lot of money

were being spent on social programs. Suspension of the law will cause the failure of

implementing social programs and the “Build, Build, Build” program would progress

slowly. PHP9 trillion was intended to be spend by the Duterte administration for its

massive infrastructure program which can help about 1.1 million people every year to

have a job. For the next five (5) years, National Economic and Development Authority

(NEDA) estimated that as much as PHP31.2 trillion will be contributed to the economy

by the "Build, Build, Build" program. The TRAIN Law which was implemented in

January 1, year 2018 was just the first package wherein it reduces personal income taxes

and adjusts excise taxes on fuel and automobiles.

According to Pernia,

We hope the TRAIN 2 will be passed before the end of the year because

that’s also a critical package of CTRP. The CTRP is a very sound

24
 program, well studied (law), and it is the outcome of so many

consultations

The Tax Reform program's second package wanted to reduce the rate of

incorporate income tax and to rationalize fiscal investment incentives. Some of the

lawmakers have repeated their call to abolish the TRAIN Law in the middle of increasing

the inflation rate while other lawmakers wanted to hold up the said Law. Due to the price

increase of major commodities such as food, fuel and transportation, the inflation rate of

the country has increased to 5.2 percent in year 2018 in the month of June. Pernia further

said that even amidst of all the sentiments of the citizens, he reminded us that the TRAIN

Law also increases the 99 percent of income taxpayers' take-home pay that will help them

to adjust to the inflation rate and the increase of prices of goods

According to Department of Energy (DOE), in its article "DOE assures fair

implementation of TRAIN Law", stated that the DOE assured the public that they already

took actions to prevent abuse and ensure fair and effective implementation of the taxation

scheme. Cusi said that DOE is authorized to ensure that the pricing of oil products is

carried out within the reach of the TRAIN Law. Over the process of the implementation

of the Package 1 they want to continue their coordination with their stakeholders until the

second tranche. They will be more hands on in monitoring the second tranche for

petroleum products. In the second tranche of TRAIN Law there will be an additional

excise tax of P2.00 per liter of diesel and gasoline, and P1.00 per kilogram on liquid

petroleum gas (LPG). And there will also be an additional 12% VAT, P2.24 for both

diesel and gasoline, and P1.12 for LPG. The DOE informed out that the second tranche of

fuel excise tax will still be smaller because of the rollbacks last 2018 and January 2019.

25
 We might have to sacrifice more to fund important programs of the government

such as free education, increase the salaries of public school teachers, to support the

“Build, Build, Build” program. In 2040 there will be more job and livelihood

opportunities for the people of the Philippines.

Foreign Literature

Before authorization of the duty change charge, U.S. people and organizations for

the most part were exhausted on their overall pay, however with vital admonitions. For

instance, active business income earned by foreign subsidiaries was commonly not

expose to U.S. tax until really repatriated to its U.S. investors as profits. In this way,

some global organizations had the capacity to consolidate foreign tax planning

methodologies (intended to decrease foreign tax liabilities) with U.S. planning systems

(intended to relocate migrate offshore income to bring down foreign subsidiaries) and

accordingly concede U.S. charge on those foreign income.

This Tax Reform forces a one-time tax on a 10 percent or more U.S. stockholder's

share of most aggregated and beforehand untaxed foreign income and earnings after 1986

of a controlled outside partnership (CFC)— or of another outside enterprise having a U.S.

corporate investor with no less than 10% proprietorship—paying little respect to whether

such benefits are really repatriated. For any investor that is a U.S. enterprise, individual,

or organization, considered repatriated income held in real money and money reciprocals

will be taxed at 15.5% and remaining profit held in illiquid resources will be taxed at 8%.

(For 10% U.S. corporate investors, a fractional outside assessment credit is permitted in

extent to the assessable measure of the repatriated profit.) U.S. investors may choose to

pay this one-time charge in portions over a time of 8 years: 8% of the risk in every one of

26
the initial 5 years, 15% in the 6th year, 20% in the 7th year, and 25% in the 8th year. A

special provision for S corporations concedes the tax until the S organization sells

considerably most of its assets, stops to direct business, changes its tax status, or the

choosing investor exchanges its stock.

As a fundamental change from earlier law, U.S. organizations will never again be

burdened on certain non-U.S. salary, under rules like the so-called participation exception

utilized in various tax nations. More specifically, a U.S. enterprise that possesses 10% or

more of an outside partnership (other than a passive foreign investment organization that

is not likewise a CFC) is qualified for a 100% conclusion for the outside source segment

of profits got from such a company. Under a comparable idea, productive profits

emerging from a U.S. organization's deal or trade of stock in an outside backup held for

over one year will be treated as a profit for reasons for this 100% dividends-received

deduction. All sums qualified for the 100% dividends-received deduction will decrease

the U.S. company's premise in its load of the outside organization for motivations behind

deciding any misfortune on the possible mien of such stock. This finding is just

accessible to C organizations that are not regulated investment companies (RICs) or real

estate investment trusts (REITs).

Another provision intended to decrease a worldwide business' incentive to move

benefits to CFCs taxes the global intangible low-taxed income (GILTI) of a CFC

currently to its U.S. corporate and different investors to the extent its total net income

exceeds a routine return. The provision applies to U.S. investors in tax years of a CFC

starting in 2018 or later.

27
 U.S. corporate investors of CFCs (but not individual, partnerships or S

companies) can deduct 50% of GILTI pay for tax years starting in 2018 through 2025 and

37.5% of GILTI from that point. U.S. corporate investors of CFCs can likewise guarantee

a foreign tax credit with respect to included GILTI sums, yet such credit is restricted to

80% of the outside tax paid, and any unused foreign tax credits cannot be conveyed

forward or conveyed back to other tax years.

As opposed to adding the GILTI tax to disincentivize U.S. people moving

intangible incomes abroad, the new Law additionally gives an incentive to keep

intangible resources in the U.S. and, to encourage U.S. export action by permitting a U.S.

company (yet not different U.S. people) to deduct 37.5% of its foreign-derived intangible

income (FDII) for taxable years starting in 2018 through 2025 and 21.875% from there

on. FDII of a U.S. corporation is for the most part salary from the sale of property to a

non-U.S. individual for a foreign use or from administrations furnished to any individual

or concerning property situated outside the U.S. also, to the degree considered U.S. pay,

will generally be completely taxable to the organization.

To enhance the foregoing exclusions and deductions diminishing tax collection of

non-U.S. pay—with limitations on same as portrayed above—the new law is intended to

prevent erosion of the U.S. household tax base by expanding the tax cost related with

shifting profits abroad to avoid or generously delay U.S. tax collection.

First, the new base erosion anti-abuse tax (BEAT) is an alternative minimum tax

on organizations that have yearly gross receipts for the three prior years of at least $500

million and make installments to outside related gatherings more than a limit sum. These

incorporate installments deductible against U.S. taxable salary such interest, royalties,

28
and service fees (however do exclude expenses of merchandise sold). The BEAT expense

rate is 5% for duty years starting in 2018, 10% for tax years 2019 through 2025, and

12.5% from that point.

Second, an outbound transfer of goodwill, going concern value, or in-place

workforce to an outside organization in a generally tax-exempt exchange will be liable to

U.S. taxation (either through current gain recognition or deemed annual royalties).

Moreover, the Internal Revenue Service (IRS) is authorized to value elusive property

exchanged transferred offshore on an aggregate basis (as opposed to resource by-

resource) if such valuation accomplishes an increasingly dependable outcome.

United States charges tax on its citizens and residents domestic and foreign

income. Nonresident aliens or the noncitizens who has not passed the substantial

presence tests are taxed on their U.S.-income.

Personal income tax is tax paid by the people on the money a resident earns. The

top income tax rate in U.S. for 2019 is 37%. Public Law 115-97 (P.L. 115-97)

temporarily changes income tax rates. Some deductions, credits, and exemptions for

individuals are eliminated and the others are modified, these changes are temporary. The

statutory corporate tax rate is permanently reduced and many deductions, credits, and

other provisions are also modified. P.L. 115-97 reduced both the individual and the

number of tax brackets in order to comply with U.S. budget rules. United States income

tax rates and brackets are categorized into: Single taxpayers, married taxpayers filing

jointly, head-of-household taxpayers and married taxpayers filing separately.

29
 According to PricewaterhouseCoopers (2019),

Under P.L. 115-97, for tax years beginning after 31 December 2017, and before 1

January 2026, the AMT exemption amount is increased to USD 109,400 for

married taxpayers filing a joint return (half this amount for married taxpayers

filing a separate return), and USD 70,300 for all other taxpayers (other than

estates and trusts). The phase-out thresholds increase to USD 1 million for

married taxpayers filing a joint return and USD 500,000 for all other taxpayers

(other than estates and trusts). These amounts are indexed for inflation. For 2019

the AMT exemption amount is USD 111,700 for married taxpayers filing a joint

return (half this amount for married taxpayers filing a separate return), and USD

71,700 for all other taxpayers (other than estates and trusts), and the phase-out

thresholds are USD 1,020,600 for married taxpayers filing a joint return and

USD 510,300 for all other taxpayers (other than estates and trusts).

Alternative minimum tax (AMT) is payable only to the extent it exceeds the

regular net tax liability. Foreign tax credit (FTC) is offered by income tax systems that

tax residents on worldwide income to lessen the potential for double taxation.

The recent tax reform of U.S. President Donald Trump has a positive side that

decreases the rate of corporate tax from thirty percent (35%) to twenty percent (20%).

The tax reform, together with the change of current worldwide taxation to territorial

taxation, may lead to the alteration of the practice done by U.S. multinational in which

they will retain their profit in countries that have low taxes.

Moving from current worldwide taxation to territorial taxation may cause to

trigger a big redemption of the foreign reserve funds estimating of about $1.7 trillion. The

30
real issue lies within how the funds will be used on and if the redemption will make the

U.S. economy healthy. Only a little impact will be felt by the real economy if the funds

will simply be used to buy shares again or to advance mergers and acquisitions. On the

other side, a tax competition with other countries may occur. France has taken an action

to make the corporate tax rate lower. The destination-based cash-flow tax (DBCFT) has

been exempted in the tax plan. To be more efficient, the tax should be implemented at the

same time in worldwide basis. The distributional problem was extremely huge in United

States which, in return, causes to have major wealth inequalities.

Tax Reform of Trump, together with the help of the artificial intelligence and of

new technologies, may result to the worsening of inequalities that will bring benefits only

to the wealthy class. Wider assets gaps will happen if the inheritance tax will be cut. On

the other side, only a small amount of consideration is given to the middle class, which is

the center of healthy public opinion. In this light, Trump's reform of income taxes is

viewed as dangerous by the citizens of Japan, the Japanese people. Economic

expansionary effect should be included in Trump's Reform. Combining it with the

investment of aggressive infrastructure would therefore be causing the economy to

overheat, resulting to a much more higher interest rate and inflation. In addition, bigger

fiscal deficit will be produced that will increase interest rates in U.S. Asian ang global

economy will be greatly affected in a negative way.

To sum it all up, there are many issues concerning Trump's reform. People in

Japan needed to remain vigilant in its impacts not only to U.S. economy but also to the

global economy.

31
 Chapter III

Methodology

This study was conducted in order to assess the awareness of the minimum

income earners about the TRAIN Law. In order to gather the necessary data, the

researchers utilized descriptive method, using quantitative method. The survey-

questionnaire method was the research instruments used for data-gathering.

Specifically, this chapter will cover the following: the research design and

method, the respondents or subjects to be studied, the data collection instrument, and the

data analysis.

Research design

The research design that was used by the researchers was descriptive design.

Using this design, the researchers determined the awareness of minimum income earners

to TRAIN Law in Barangay II-Poblacion Alaminos, Laguna. This study was descriptive

because it demands to know the characteristic of TRAIN Law which has resulted to either

aware or not aware that the minimum income earners were.

Research Instruments

For this study, self-administered questionnaire for data gathering process was

used to get quantitative data. The questionnaire was in the form of checklist. It is the type
intended to obtain information on the awareness of minimum income earners of Barangay

II-Poblacion Alaminos, Laguna to TRAIN (Tax Reform for Acceleration and Inclusion)

Law. The researchers used closed questions in the questionnaire. Closed question is the

one that can be answered with a single word or single phrase. They have used the closed

question in order to limit the responses of their respondents and it is easy and quick to

answer.

Subjects of the study

The target population for this research characterized to incorporate the minimum

income earners in Barangay II-Poblacion Alaminos, Laguna, since these are the

participants within the researchers’ reach.

According to the 2015 Census, the population of Barangay II, also known as

Poblacion, in the municipality of Alaminos, Laguna was 2,804 which is 5.86% of

Alaminos’ total population. The current population of the Barangay II-Poblacion

Alaminos, Laguna is 3, 340 and has a household of 653. The minimum wage in this

barangay is ₱ 350.

Sampling Technique

Simple random sampling is the procedure that was used by the researchers in

choosing the participants for this study. They carefully selected their respondents based

on what variables they considered. The total number of households was 653 from

33
Barangay II-Poblacion Alaminos, Laguna. With the use of Slovin’s formula with a 5%

margin of error, the researchers were able to derive the sample size:

𝑁
𝑁=
1 + 𝑁𝑒²

653
𝑁= = 248.0531814
1 + 653(0.05)²

Research procedure

The researchers conducted a survey to the population of Barangay II-Poblacion

Alaminos, Laguna by using a questionnaire in order to collect data from the potential

respondents. They provided multiple choices of answers per item to their respondents to

have consistency over time. The questionnaire in this survey is composed of multiple

choices per item and five-item likers. The respondents need to answer each question

honestly about their views and opinions.

The researchers chose the minimum income earners in Barangay II-Poblacion

Alaminos, Laguna since it was within the researchers’ reach and they have connections to

the barangay officials in Barangay II-Poblacion Alaminos, Laguna.

The researchers conducted the survey from morning until afternoon within a time

span of 3 weeks. After the researchers got the questionnaire distributed to the

respondents, they sorted out the questionnaires. They were able to choose only the

minimum income earners by dividing the respondent’s combined daily income to the

number of earners in their family. The minimum income in Barangay II-Poblacion

34
Alaminos, Laguna is ₱350. Then, the researchers tabulated the answers from each

questionnaire which helped them gather their needed information.

Data analysis

The researchers used percentage to represent the descriptive statistics which

helped the researchers to identify what percent of the minimum income earner in

Barangay II-Poblacion Alaminos, Laguna is in favor or not with TRAIN Law by using

the formula:

𝐹
𝑃 = 𝑁 x 100

Wherein:

P= percentage

F= no. of respondents who are aware or not

N= total number of minimum income earners

By doing so, the researchers got the mean, median, and mode of the respondents'

income. Descriptive Statistics was used because it is very helpful to the researcher to

simply describe what is going on to their study.

After the researchers collected the responses they needed to check if all the

questions were answered by the way the researchers want it to be. They will need to

35
check if there are errors in how the respondents answered and if the survey needs to be

conducted again. After checking all the errors, the researchers encoded all the data to the

Microsoft Excel to have easier access in manipulating the data.

36
 Chapter IV

RESULTS AND DISCUSSION

This chapter discusses the data analysis and findings from 156 questionnaires

completed by the minimum income earners at Barangay II-Poblacion Alaminos, Laguna.

Presentation was done through the use of tables and charts. Analysis and interpretations

of data are shown after the tabular presentations. The purpose of this study is to know

what percent of the minimum wage earners of Barangay II-Poblacion, Alaminos, Laguna

are favor and not favor of TRAIN Law, and also to know what their perceptions,

opinions, and knowledge are about the said law.

More specifically, the researchers sought to answer the following questions:

Problem No. 1 What was the demographic profile of the respondents according to:
 1.a. Gender

Figure 1

Respondents’ Gender Profile

The figure above shows the gender profile of the respondents. The table shows

that there were 92 or 59% of the respondents were females and 64 or 41% of the

respondents were male.

The data above shows that most of the respondents were females and not so many

were males. This implied that there were more females that cooperated with the

researchers during the study which was conducted at Barangay II-Poblacion Alaminos,

Laguna.

38
1. b. Occupation

Figure 2

Respondent’s Occupation

Figure 2 shows that respondents were asked to tick the occupation category where

they belong to. If their occupation was not indicated in the choices, they were to state it in

the blank. Of 156 responses, 24% respondents were vendors, 10% were drivers of public

vehicle, 25% were employees, 5% were house helpers, 5% were seamstresses, 2% were

OFWs, and 15% were workers.

39
1c. Combined family daily income

Table 4

Combined daily income of minimum income earners

Participants were asked to state the total income of their family daily. The

minimum income in Barangay II-Poblacion Alaminos, Laguna is ₱350. Of 156 responses,

the total income ranged from P100- P2000. Daily income stated above is divided to the

number of earners in their family. Daily income that is above the minimum income which

is ₱350 is also considered as minimum income because it is based on the number of

earners in their family.

40
1d. Family size

Figure 3

Respondents’ family size

Figure 3 reveals the respondents’ number of family member living in their house.

The family size that consist of four got the highest response with 38 or 24.4%.

This only shows that Barangay II-Poblacion Alaminos, Laguna has a small population.

The reason why the number of family member is included in the researchers’

questionnaire is to know if the earner’s daily income is enough to sustain their daily

budget. Based on the result, the number of family member is not that large thus, some of

them, their daily income is somehow enough to sustain their daily needs.

41
1.e. Number of family members employed

Figure 4

Respondents’ number of family members earning

Figure above presents the respondents’ number of family members who

contribute in earning to sustain their daily needs.

For about 156 responses, 57 (36.5%) stated there is 1 earner, 41 (26.3%) stated

there are 2 earners, 31 (19.9%) stated there are 3 earners, 15 (9.6%) stated there are 4

earners, 7 (4.5%) stated there are 5 earners, 4 (2.6%) stated there are 6 earners, and 1

(0.6%) stated there are 7 earners. Majority of the respondents only have 1 earner.

42
Problem No. 2 How aware were the respondents about the TRAIN Law?

Figure 5

Awareness of the respondents

As depicted in the figure, sixty-three percent (63%) of the respondents have no

knowledge about the TRAIN Law while thirty seven percent have. This concludes that

majority of the minimum income earners are not familiar with the Law. They only know

that the products they used to buy have increased in price. They are not aware to the

reasons why there is a price hike. They are only disappointed because the income that

they get is already low and now there is a price hike. Their condition now is even worse.

Rather than getting better; they are now suffering.

43
 Figure 6

The scale of the respondents’ awareness

20.00%

18.00%

16.00%

14.00%

12.00%

10.00%

8.00%

6.00%

4.00%

2.00%

0.00%
1 2 3 4 5 6 7 8 9 10

Figure 6 shows how well the minimum income earners know the TRAIN Law by

scaling it from 1-10, 1 being the lowest and 10 being the highest.

As of 9.1% respondents were in 1, 18.2% in 2, 18.2% in 3, 9.1% in 4, 18.2% in 5,

and 14.5% in 7. The data above depicts that respondents have little knowledge about the

TRAIN Law. This concludes that there should be a program, seminar or any ways that

makes the people have knowledge about the TRAIN Law, to fully understand why there

is a price hike and an exemption on personal taxes.

44
 Figure 7

Respondents’ assessment on what products have increased prices because of TRAIN

Law

The pie chart shows the respondents’ knowledge about the products that increased

in price caused by TRAIN Law. Gasoline got the highest percentage with 23%. This only

shows that some of the residents of Barangay II-Poblacion Alaminos, Laguna noticed that

gasoline is one of the major products that increased in price because of TRAIN Law.

45
Problem No. 3 What did the respondents think about the TRAIN Law?

Figure 8

Respondents’ assessment whether they are in favor of TRAIN Law or not

As shown in the figure, majority of the residents of Barangay II-Poblacion

Alaminos, Laguna are not in favor of TRAIN Law. These are backed up by various

reasons such as TRAIN Law is just going to worsen their lives instead of making it

better. Some of them said that the benefit of the said law is for the non-minimum income

earners only because this time, they do not have to pay income tax. The effect of this to

them is that the products they used to buy have increased in price which for them is not

effective for all the Filipinos.

46
 Figure 9

Respondents’ opinion on “TRAIN Law has a good effect to me”

The graph shows the effects of TRAIN Law to minimum income earners of

Barangay II-Poblacion Alaminos, Laguna. Based on the result, disagree got the largest

proportion with 46.20% while Agree got 2%. Minimum income earners at Barangay II-

Poblacion Alaminos, Laguna are completely disappointed with the Law. According to

them, TRAIN Law is just another burden to Filipinos individually. It has a good effect on

some infrastructures, but it is not for the benefit of the individual because they suffer

even more.

47
 Figure 10

Respondents’ assessment on “We do not need to increase taxes to improve

infrastructures.”

Figure 10 depicts the reaction of the respondents on the statement “We do not

need to increase taxes to improve infrastructures.”

The 14.7% of respondents has agreed that we do not really need to increase the

tax rate to build infrastructures and then 45.5% of the minimum income earners

somewhat agreed. 23.11% has answered neutral. 21.11% has somewhat disagreed while

another 16% has strongly disagreed. According to them, the Law should prioritize the

financial problem of our country and not some infrastructures around us. To them,

prioritizing improvement of infrastructures will not help in solving the financial problem

of our country. Taxes should be used in such programs like feeding program, building

homes for the homeless, and such.

48
 Figure 11

Respondents’ assessment on “TRAIN Law is a law that has a good intention in

improving people's lives”

Most of the response was not so sure if the said Law has the objective of making

the lives of people easier. It can conclude that they cannot feel the positive side of the

Law. It also concludes that they also believe that TRAIN Law has an intention in

improving people’s lives in some ways. They believe that TRAIN Law has a positive side

such as the price increase of cigarettes and liquor that may cause some people not to buy

those products; it might be a start of healthy living for some people because rather than

buying these products, they will save the money in buying some necessities in daily

living. They also believe that TRAIN Law is just a burden to Filipino lives because of the

price hike on the products that is needed every day like fruits, vegetables, fish, and the

like.

49
 Figure 12

Minimum income earners response to “TRAIN Law is a law that just worsen the

daily lives of people especially the minimum income earners.”

According to the minimum income earners who are the researchers’ respondents,

they agreed that the TRAIN Law just worsen the daily lives of the people, especially

them. It is because the products they used to buy have increased and they do not have

anything else to do because most of the products they used to buy are necessary for

everyday lives. According to them, the president and the Law enforcement officials

would have thought beforehand that it would be best for everyone and not for others

because majority of the population of our country is minimum income earners. In

addition, they said that the president is even more concerned with the welfare of

infrastructures than the financial concern about minimum income earners.

50
 Figure 13

Respondents’ perception on “TRAIN Law doesn't really affect our daily budget.”

Majority of the respondents disagreed that TRAIN Law does not really affect their

daily budget because it really does. When they are in a grocery, they are now adjusting

what foods to buy because the prices of pork, chicken and fish have increased. TRAIN

Law has really a bad effect on them, starting with their fare on a public transportation

utility to their budget on food. Vegetable and fruits also increased in price

51
 Problem no. 4 How did TRAIN Law affect minimum income earners’ everyday

lives?

Figure 14

Respondents assessment whether TRAIN Law affects their budget or not

The pie chart shows if TRAIN Law has an effect to the respondent's daily budget.

Respondents who answered that TRAIN Law affects their budget got the highest portion

with 140 or 89.7% while those who didn't got 16 or 10.3%. This shows that TRAIN Law

has an impact to the budget of some residents of Barangay II-Poblacion Alaminos,

Laguna. According to them, it does not just affect them, but it really has a huge effect on

their daily budget. They are not into this law because for them, the focus of the TRAIN

Law is the infrastructures and not the financial problem of Filipinos. TRAIN Law

brought them a huge and bad effect especially on their budgets. According to them,

sometimes, their daily budget is not that enough to buy the products they need.

52
 Figure 15

Respondents’ assessments on the products they continuously buy regardless of the

price increase

The graph shows the different products that a person buys even if the price

increases. Gasoline got the largest proportion with 19%. It just shows that some residents

of Barangay II-Poblacion Alaminos, Laguna still use gasoline on their daily lives.

53
 Figure 16

Respondents’ assessment on whether TRAIN Law improve their daily lifestyle or

not

The graph shows if TRAIN law for residents of Barangay II-Poblacion Alaminos,

Laguna has improved their daily lifestyles. 87.20% of the sample population says that it

improves their daily lifestyle while 12.80% did not agree with it. Most of the respondents

believe that TRAIN Law did not improve their daily lifestyle. This is because of the price

hike of some products needed in everyday life. They believe that TRAIN Law made

people’s lives even worse. 12.8% believe that TRAIN Law improve their daily lifestyle.

This is because they can now avoid buying cigarettes and hard liquors. They now have a

reason to avoid buying unhealthy products. They will eliminate to buy these things and

buy the things that are most important and is needed in everyday life.

54
 Figure 17

Respondents’ assessment on “I can tell that my budget is enough to sustain my daily

needs”

Majority of the responses of minimum income earners were somewhat disagreed

to the statement that their income is enough for their daily budget while the minority has

agreed strongly. It just means that many of them were having a hard time to budget their

salary for the day. Due to price hike, they were now having a hard time in budgeting but

according to them; they are trying to adjust with their budget so that it is still enough to

buy products that are needed in everyday life.

55
 Figure 18

Respondents’ reaction on “I can tell that price hike is the cause why I can no longer

purchase a certain product.”

A lot of minimum income earners have agreed to the fact that there are products

that they cannot afford to buy due to the implementation of TRAIN Law while the

smallest percentage answered is the strongly disagreed and it means that many of them

have a limited budget only to sustain their needs for their survival. Some of them are

trying to adjust with their budget just to buy some necessities in daily life. Maybe these

products are cigarettes, liquors, and such.

56
 Figure 19

Respondents’ reaction on “TRAIN Law increases our budget”

The graph shows that the minimum income earners disagreed that the TRAIN

Law increases their budget because according to them, the products nowadays have

increased their prices and it has a great impact on their budgeting. TRAIN Law did not

increase their budget but decreases even more due to the price hike.

57
 Problem No. 5 Why did the respondents still buy products or pay services that

have increased in price?

Figure 20

Minimum income earners response to “Why do you still buy those products?”

The graph shows why the resident of Barangay II-Poblacion Alaminos, Laguna

continuously buys products that are affected by the price hike. 'Because I need it' got the

highest percentage with 89.70%. It shows that they still choose what they will buy based

on their needs. According to them, they cannot do anything but to prioritize buying the

products that are needed in everyday life. They need to give up their wants just the

budget to be enough in buying necessities.

58
 Chapter V

Summary, Conclusion, and Recommendation

This chapter discusses the summary, conclusion, and recommendations of the

study after analyzing and interpreting the data gathered.

Summary

This research was intended to know the awareness of the minimum income

earners of Barangay II-Poblacion Alaminos, Laguna to TRAIN Law. Furthermore, it was

conducted to have a deeper understanding and to provide answers regarding the effects of

TRAIN Law to the minimum income earners, the awareness, how knowledgeable the

minimum income earners about the law, and to observe if the said law improved their

lives in different aspects like budgeting their income and buying products. In addition,

this study aimed to provide necessary information that will support the topic, and to

better understand the situation of minimum income earners with the said law.

The researchers used Slovin’s formula to get the sample population of the target

respondent. In addition, they divided the total number of family members from total

number of people earning in a family to get the income of a family and to sort out the

minimum and non-minimum income earners.

 This research validated that many minimum income earners of Barangay II-

Poblacion Alaminos, Laguna still are not aware or they are not knowledgeable enough

about the TRAIN Law and they are only concerned to the effects of it to them.

Conclusion

Upon the conveyance of the questionnaire distributed to the minimum income

earners of Barangay II-Poblacion Alaminos, Laguna, the following questions were

answered:

1. What were the demographic profile of the respondents according to gender,

occupation, daily income, family size, and number of family members employed?

According to the data, it is concluded that there were more females who

cooperated with the researchers during the study. Most of the respondents were

vendors. Based on all respondents’ family daily income, there were some

minimum income earners, and some were not. For some of the respondents whose

household is not that large, their daily income was somehow enough to sustain

their daily needs. But due to having only one earner for most respondents, their

income may not be enough for the whole family, but this still depends on the

family size.

60
2. How aware were the respondents about the TRAIN Law?

According to the data gathered,minority of the respondents of Barangay-II

Poblacion Alaminos, Laguna were aware of TRAIN Law but had only limited

knowledge regarding the law. It can be concluded that the respondents were not

aware about TRAIN Law nor have knowledge about the said Law. Hence,

awareness of TRAIN Law should be enhanced.

3. What did the respondents think about the TRAIN Law?

According to the data, majority of the respondents were unfamiliar to

TRAIN Law. The only background that they had about TRAIN Law was the news

shown in the television. They just knew that price hike affected their daily

income, yet they were not favor of it because they thought that TRAIN Law was

an additional burden to their possible growth. Even though some of the products

price had increased, they still bought it because those were the necessities for their

daily survival.

4. How did the TRAIN Law affect minimum income earners everyday lives?

Based on the information gathered by the researchers, almost half of the

respondents were no longer able to buy some certain products due to the price

61
 hike and thus it was concluded that the increase of price of basic commodities

prevented many of minimum income earners to buy the products they used to

have. Most of the respondents claimed that their daily income had not increased.

Researchers concluded that the minimum income earners had a hard time coping

up with price increase of many products. And the researchers concluded that

majority of the respondents were negatively affected by the TRAIN Law.

5. Why did the respondents still buy products or pay services that have increased in

price?

According to the study, respondents still bought products and paid for

services even if these products had increased in price because these products were

needed in everyday lives. They had no choice but to buy these products.

Recommendation

1. To the barangay officials of the Barangay II-Poblacion, Alaminos Laguna, they

can conduct programs such as seminars, activities, and livelihood programs to

inform the residents of the Barangay II-Poblacion Alaminos Laguna about the

newly implemented Law.

2. To the government or government officials, it is recommended to have seminars

about the TRAIN Law to educate the citizens on how it will help them in the

future.

62
3. To everyone, it is suggested that they become more aware about the TRAIN Law

because their awareness and knowledge of the said law is only minimal. People

should understand deeper to see the essence of the said law.

4. To future researchers, it is recommended to dig deeper about the law so you can

explain everything to the respondents.

5. For further researches and studies about this topic, it is recommended for

researchers to study and focus on the reasons why TRAIN Law should not be a

disadvantage to minimum income earners.

63
 Appendix

Actual Survey questionnaire

Ang pag-aaral na ito ay isinasagawa ng mga mag-aaral ng Accountancy, Business

at Management (ABM) ng Laguna College bilang bahagi sa kanilang pananaliksik. Ang

pag-aaral na ito ay isinasagawa sa panahon ng akademikong taon 2018-2019 lamang. Ito

ay isang sarbey na patungkol sa pang-unawa, opinyon at reaksyon ng minimum wage

earners (mababa ang sahod o kinikita) tungkol sa TRAIN Law. Ang sarbey na ito ay

magtatagal ng hindi lalagpas ng 10 minuto upang sagutin.

Ito ay para lamang sa mga layuning pang-edukasyon, at hindi para sa anumang

layunin sa pangangalakal. Ang tanong na ito ay random na ipinamamahagi sa lahat ng

may mga pinakamababang sahod sa Barangay 2 Poblacion, Alaminos, Laguna.

________________________________________________________________________

Panuto: Lagyan ng tsek (/) ang patlang na katabi ng iyong nais na kasagutan.

Kumpletuhin ang pagpuno ng kinakailangang impormasyon.

Pangalan (Opsyonal):____________________________

Kasarian (Kinakailangan):_________

Edad (Opsyonal):_____

64
1. a. Mayroon ka bang kaalaman tungkol sa TRAIN Law?

__ Meron

__ Wala

b. Kung oo, gaano kataas ang iyong kaalaman patungkol sa TRAIN Law? (Sukatin

ang kaalaman mula 1-10; 1- pinakamababa, 10- pinakamataas)

__1 __2 __3 __4 __5

__6 __7 __8 __9 __10

2. Ano ang iyong trabaho?

__Nagbebenta ng Street food __Empleyado

__Kasambahay __Mangagawa

__Drayber ng pampasaherong sasakyan

Kung iba, pakitukoy:________________

3. Magkano ang kabuuang kita ng inyong pamilya sa pang-araw-araw? ₱___________

4. Ilan ang kumikita sa inyong pamilya? ________

5. Ilan ang kabuuang bilang nang naninirahan sa inyong bahay? ________

6. Nakakaapekto ba ang TRAIN Law sa iyong badyet?

__Oo

__Hindi

7. Pabor ka ba sa TRAIN Law?

__Oo

__Hindi

65
8. Anong mga produkto ang nagtaas ng presyo dahil sa train law?

__ Gasolina __Load __ Sigarilyo

__ Soft drinks __Shampoo __Sabon

Kung iba, pakitukoy: ___________________

9. Ano ang mga produkto na patuloy mong binibili kahit na nagtaas na ang presyo?

__ Gasolina __Load __ Sigarilyo

__ Soft drinks __Shampoo __Sabon

Kung iba, pakitukoy: ___________________

10. Bakit mo pa rin ito patuloy na binibili?

__Dahil kailangan __Upang tugunan ang aking kasiyahan

__Dahil nakasanayan __Dahil sa impluwensya ng iba

__Dahil wala na akong magagawa kundi tanggapin

11. Napapabuti ba ng TRAIN Law ang iyong pang araw-araw na pamumuhay?

__Oo

__Hindi

66
 Panuto: Bilugan ang numero na nagpapakita ng iyong kasagutan.

Matinding Hindi Alinlangan Sumasang- Matinding

hindi sumasang- ayon sumasang-

sumasang- ayon ayon

ayon

12. Maganda ang epekto 1 2 3 4 5

ng TRAIN Law sa

akin

13. Sapat padin ang 1 2 3 4 5

kinikita kong pera

para sa pang-araw-

araw na pamumuhay.

14. May mga produkto na 1 2 3 4 5

hindi ko na mabili

dahil sa pagtaas ng

presyo

15. Hindi natin kailangan 1 2 3 4 5

itaas ang singil ng

buwis para mas

mapaganda ang mga

imprastruktura.

67
16. Ito ay isang batas na 1 2 3 4 5

may hangaring

mapaunlad ang buhay

ng tao

17. Ito ay isang batas na 1 2 3 4 5

lalo lang nagpalala sa

kalagayan ng tao

partikular na sa mga

minimum wage

earners

18. Ito ay isang batas na 1 2 3 4 5

walang naging epekto

para sa mga

mamamayan

19. Nadagdagan ang 1 2 3 4 5

aming badyet.

68
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