REACTION PAPER

Honestly, I am not that concern towards our country’s tax system because I don’t feel its
direct impact on my daily life. But after studying Taxation 1, I realized that, basically, everything
that I have or even do is being taxed. While having my readings about the income tax reform, I
discovered that among the ASEAN-6 countries, the Philippines has the highest personal and
corporate taxes. I was wondering how other countries, even though they have lower income
taxes, still managed to boost their economy. It was quite a shock to me because some of these
countries are even stronger than the Philippines.

After having a careful check on the income tax reform planned by our current
administration, I am happy to know that the poor and middle classes are going to benefit the
most. They plan to change the annual income bracket starting from PHP250000 and lower the
personal and corporate taxes. This means that Filipinos with lower than PHP250000 incomes
can enjoy their pay without being taxed. It increases their take-home money, even when their

m
gross pay stays the same.

er as
co
However, I still have doubts towards this reform. With these changes, the government

eH w
will lose out on revenues. I just hope this won’t affect the services of the government to the

o.
Filipino people. I am giving my full trust to our President Duterte to do his best and use the
rs e
Filipino money wisely. I hope that he will be able to maximize the government revenues for the
ou urc
benefit of all. As he said in his SONA, “My administration will pursue tax reforms towards a
simpler, more equitable and more efficient tax system that can foster investment and job
creation.” Another thing that I come to realize is that with the increase in the take-home money
o

of Filipino workers and employees, there will be more disposable income and people can get to
aC s

buy more of their necessities. This is good for the taxpayers and also for the economy. The GDP
vi y re

will benefit from increased consumption. It’s amazing how this realization came into my mind. I
guess studying basic macroeconomics has me good. Overall, I am on the right side of the line. I
agree on the income tax reform but still quite doubtful as to its consequences and results.
ed d
ar stu
is
Th
sh

This study source was downloaded by 100000831583106 from CourseHero.com on 10-05-2021 19:22:23 GMT -05:00

https://www.coursehero.com/file/23645874/Reaction-paper-on-Income-tax-reformation/
Powered by TCPDF (www.tcpdf.org)