Jasper John A.

Mangonon

GED103 – RPH – A77

1.) The expression "No taxation without representation" initially originated during the American
Revolution, when the colonists of America contested the British government's collection of taxes
without giving them a voice in decision-making. The settlers said it was It was unreasonable for
them to pay taxes to a government where they had no voice or representation. This slogan was
used by the colonists as a rallying cry. highlighting the notion that tax payers should be involved
in determining how their money is used and the rules that govern taxation. When seen in the
perspective of Philippine growth, the slogan has a lot of significance. Like all governments, the
government of the Philippines relies on taxes to pay for operations, deliver public goods and
services, and promote economic growth. However, there has been discussion over the
effectiveness and equity of the Philippine tax system.

One specific case that relates to the Philippines' development experience is the passing of the
Tax Reform for Acceleration and Inclusion (TRAIN) law in 2017. The TRAIN bill received criticism
for its effects on low- and middle-income individuals even though it was intended to collect
money for social infrastructure and service development. Since they spend a larger proportion of
their income on these things, households with low incomes were disproportionately affected by
the increase in excise taxes on petrol, sugar-sweetened beverages, and other goods. This issue
demonstrates how important it is to consider how taxes affect different socioeconomic groups
and ensure that the cost is distributed fairly. Another issue is the issue of tax evasion and the
perception that wealthy and influential Filipinos may avoid paying their fair share of taxes.
an example that pertains to the history of development in the Philippines. As a result, the
general populace feels oppressed since they must shoulder a greater weight to make up for the
deficit. To solve this problem, it is necessary to increase tax collection efforts and make sure that
everybody, regardless of socioeconomic standing, pays their fair share of taxes.

In order to solve these problems and increase the equity of the tax system, the Philippine
government has taken action recently. For instance, the Tax Amnesty Act of 2019 sought to
encourage people to pay their owing taxes by providing amnesty and incentives. The goal of this
initiative is to increase tax compliance and narrow the tax gap in the country. Additionally, the
administration has been searching for ways to simplify and advance the tax system. There is still
a lot to be done to ensure the fairness and representation of the Philippine tax system. It is
crucial for governments to actively involve citizens in tax-related decision-making in order to
promote transparency and accountability. This may be accomplished by employing techniques
like public consultations, citizen involvement in budgeting procedures, and the creation of
autonomous tax enforcement agencies.

Additionally, while creating legislation that promote social justice and inclusion, the government
should consider how taxes affect various society groups. This involves implementing progressive
tax policies that increase the burden on people with greater incomes and wealth while reducing
it for those with lower incomes and families. It also requires addressing the issue of tax evasion
and ensuring that contributions are distributed properly. the problem of tax breaks and
incentives offered to particular groups or businesses is only one illustration of how the
Philippines' overall experience with growth emphasizes the importance of the phrase "No
taxation without representation." Despite the fact that the goals of these rewards are to
encourage investment and boost economic growth, they frequently favor large firms and
affluent people over SMEs and the general public.

The Philippine tax system offers a number of benefits to companies operating in Special
Economic Zones (SEZs) or engaged in priority industries, including tax holidays, reduced tax
rates, and exemptions. It's critical to ensure that these incentives don't unduly benefit the
wealthy and well-connected even if they could attract investments and create jobs. Determine if
these incentives genuinely assist fair and sustainable development by evaluating how effectively
they operate in achieving their intended objectives. The issue of tax administration and
governance is crucial for ensuring that the tax system is egalitarian and representative in more
ways than one. The efficiency and openness of tax administration play a critical role in fostering
taxpayer trust and ensuring that they pay their fair share of taxes. administration and gathering.
Equitable distribution of the tax burden is made. The Philippine government has been making
efforts to enhance taxpayer services, strengthen tax enforcement organizations, and deploy
electronic filing and payment systems. These initiatives are meant to lessen corruption, increase
compliance, and safeguard the rights of taxpayers.

Whether social justice organizations and advocacy organizations support tax fairness and
represent the demands of marginalized communities is something else to take into
consideration. These organizations play a crucial role in advancing a fair and progressive tax
system and raising public awareness of the impact taxes have on different socioeconomic
groups. Their involvement in the decision-making process can help to make sure that the views
of people who are most adversely affected by taxation are heard and taken into account. Beyond
the context of the TRAIN law, the statement "No taxation without representation" has relevance
for the development of the Philippines. Additional variables including tax administration, tax
incentives, and the involvement of civil society groups must be taken into account to ensure that
the tax system is equitable, representational, and consistent with the values of inclusion and
social justice. The Philippine government may strive toward a tax system that represents the
needs and ambitions of the populace, resulting in more fair and sustainable development, by
engaging citizens, tackling tax evasion, and supporting progressive tax policy.

2. Long accused of being unjust to the poor and middle class while allowing the wealthy to take
advantage of loopholes and avoid paying taxes, the Philippine tax system has long drawn
criticism. Numerous studies and articles demonstrating the regressive nature of the tax system
support these words. One element of the tax system's pro-rich nature is its reliance on indirect
taxes, such as the value-added tax (VAT) and excise taxes. These taxes, which are levied on both
goods and services, frequently have a greater impact on lower-income households than on those
with higher incomes. According to study by the Philippine Institute for Development Studies
(PIDS), compared to the wealthier sections of society, the poorest 30% of families spend a higher
percentage of their income on goods and services that are subject to VAT. As a result, the poor
pay a greater effective tax rate than the rich.
The Philippines' tax system provides a number of advantages and exemptions that mostly favor
the wealthy. For instance, capital gains on the sale of stocks and other financial instruments are
subject to a lower tax rate than conventional income. This would benefit richer people who are
more likely to invest in the stock market. Furthermore, the Philippines' relatively high
inheritance tax exemption levels enable wealthy people to leave their money to their heirs
without incurring any financial obligations. There have been proposals for thorough tax reforms
that promote progressivity and strengthen revenue collection in order to reverse the tax
system's pro-rich tilt. One suggestion is to change income tax rates so that those with higher
incomes pay a bigger percentage of their income in taxes. This would guarantee that those who
can afford to pay more taxes do so and help divide the tax burden more fairly.

There is also a need to strengthen tax enforcement and close loopholes that allow for tax
evasion and avoidance. In order to do this, information-sharing agreements must be
strengthened, tax enforcement agencies' capabilities and resources must be increased, and
stricter penalties for noncompliance must be implemented. The government may then ensure
that everyone pays their fair share of taxes and contributes, regardless of socioeconomic status.
The establishment of a pro-rich tax regime in the Philippines is also affected by of the unofficial
and illicit economy. These sectors make it easier for persons and businesses to avoid paying the
correct amount of taxes since they usually entail cash transactions and operate outside of the
current tax system. Street sellers, small enterprises, and self-employed people all fall under the
umbrella that is the unofficial economy, which frequently lacks sufficient paperwork and record-
keeping, making it difficult for tax authorities to properly collect tax from these sectors. This
increases the burden on enterprises and employees in the formal sector who are required to pay
monthly taxes.