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TheEv

olut
ionofPhi
l
ippi
neTaxat
ionCr
it
iquePaper

Ast
hepr
inci
palsour
ceofi
ncomef
orgov
ernment
s,t
axesar
eacr
uci
alpar
tofeachnat
ion'
s

f
inanci
alsy
stem.I
tent
ail
sthest
atei
mposi
ngt
axesonpeopl
eandt
hings,
usual
l
yinaccor
dance,

wi
th pr
oper
ty,ori
ncome.I
nfr
ast
ruct
ure pr
oject
s,publ
i
c ser
vices,and ot
hergov
ernment

act
ivi
ti
esar
efundedi
npar
tbyt
hemoneyr
aised.Gl
obal
l
y,t
axsy
stemsdi
ff
eri
nthatt
heyhav
e

di
ff
erentr
atesandst
ruct
urest
hatar
eint
endedt
oaccompl
i
shbot
hsoci
alandeconomi
cgoal
s.

Si
ncet
axeshav
easi
gni
fi
canti
mpactonsoci
alwel
far
eandeconomi
cpol
i
cy,
ever
yoneneedst
o

under
standt
axes,i
ncl
udi
ngbusi
nesses,i
ndi
vi
dual
s,andpol
i
cymaker
s.Ther
efor
e,wewi
l
ltal
k

aboutwhatar
etheev
olut
ionswheni
tcomest
othemat
teroft
axat
ioni
nthePhi
l
ippi
nest
oal
so

pr
ovi
decl
ari
tyonwhet
hert
axat
ionbr
ingsanygoodandchangest
ousasFi
l
ipi
nos.

I
n moder
n Phi
l
ippi
ne l
egi
slat
ion,we use a pr
ogr
essi
vet
axat
ion sy
stem.Phi
l
ippi
ne

t
axat
ioni
sseenast
heonl
ysui
tabl
eandaccept
abl
etaxsy
stem i
nPhi
l
ippi
neadmi
nist
rat
ionand

gov
ernmentasapr
ogr
essi
veandequi
tabl
etaxsy
stem.The1987Phi
l
ippi
neConst
it
uti
on'
s

Ar
ti
cleVI
,Sect
ion28(
1),
ist
hemai
nregul
ati
ngpr
ovi
siont
hatsuppor
tst
his.Thest
atement"
the

r
uleoft
axat
ionshal
lbeuni
for
m andequi
tabl
e"demandst
het
axi
ngaut
hor
it
ytobel
i
mit
ed.

Gov
ernment
s can exer
tsi
gni
fi
canti
nfl
uence ov
ereconomi
c dy
nami
cs t
hrough t
axat
ion.

Gov
ernment
scanst
imul
ateeconomi
cgr
owt
hbycol
l
ect
ingt
axest
ofundsoci
alpr
ogr
ams,

i
nfr
ast
ruct
ure,andnecessi
ti
es.Abuseorov
er-
taxat
ion,ont
heot
herhand,mayhav
enegat
ive

consequencest
hathi
ndereconomi
cgr
owt
handcausepubl
i
cdi
ssat
isf
act
ion.

Thi
sconceptpr
omot
esaf
airandpr
edi
ctabl
esy
stem oft
axest
opr
omot
epeacei
n

soci
etyandeconomi
cst
abi
l
ity
.Howev
er,achi
evi
ngcompl
eteconsi
stencyandequal
i
tycanbe

di
ff
icul
tsi
ncet
axr
egul
ati
onsusual
l
yinv
olv
esi
gni
fi
cantt
rade-
off
sthatf
itawi
der
angeof

f
inanci
alr
equi
rement
s.AsTaxat
ioni
sawayofr
aisi
ngf
undst
osuppor
tthegov
ernment
s,i
t

1
somehowhel
psusi
nawayt
hatt
hemoneyt
hathasbeencol
l
ect
edwi
l
lbeusedandal
l
ocat
edt
o

bui
l
dandmai
ntai
nroads,
usedt
obuyandgi
ver
eli
efgoodst
othosei
nneed,
fundsf
oreducat
ion,

mi
l
itar
yser
vicesandot
herser
vices.Wedoagr
eewi
tht
hissi
ncewecanbenef
itf
rom i
ts

pur
poses,
hav
ingmor
efundsmeansenabl
i
ngt
hegov
ernmentt
oengagei
nthedev
elopmentof

t
hecount
ry.Howev
er,knowi
ngt
hatast
hey
earpassesby
,taxesar
eincr
easi
ngandt
hatcan

af
fectt
hesal
ari
es,
pri
cesofgoodsandser
vices,
etc.

Fur
ther
mor
e,weest
abl
i
shedt
headv
ancementandt
hei
mpl
ement
ati
onoft
henewl
aws

oft
axat
ionwhenourcol
oni
zer
shi
tthebeachesofCebuwhi
chwast
hent
hecapi
taloft
he

Phi
l
ippi
nes,t
hePhi
l
ippi
ne-
Spani
sht
radei
soneoft
het
hingst
hatki
ck-
star
tedourway
sof

est
abl
i
shi
ng new f
inanci
alcoor
dinat
ion and t
axat
ion.Wi
tht
he new Eur
opean col
oni
zer
s

t
eachi
ngourcount
rymennew andmoder
nizedway
s,wehav
etr
ulyadv
ancedf
or333y
ear
s

t
hroughoutt
hei
rcol
oni
zat
ionmor
phi
ngusi
ntowhatwear
ethatdayandt
heupcomi
ngcent
ury

ofournat
ion.

Ther
efor
e,weconcl
udet
hatt
axat
ioni
nthePhi
l
ippi
nescanbet
racedbackt
othey
ear

900whi
chi
sthepr
e-col
oni
alper
iodoft
hePhi
l
ippi
neswher
eindat
esorr
ajawhi
char
ether
uler
s

oft
hebar
angay
sbackt
henar
ethepl
acest
hati
mpl
ement
edt
axat
ionorbuwi
sast
heycal
lin

Tagal
og,
weconcl
udet
hatFi
l
ipi
noshav
easenseofi
mpor
tanceaccor
dingt
othest
ufft
hatt
hey

ownandt
hepl
acet
hatt
heyl
i
vei
n,ev
ent
houghbackt
hent
henat
ioni
sonl
yrul
edbychi
eft
ains

andgotusedt
othehunt
er-
gat
her
erl
i
fest
yle.Looki
ngbackt
othecount
ryt
hatwehav
egr
own

andnur
tur
ed,i
t'
ssaf
etosayt
hatwehav
eadv
ancedandadopt
edt
hel
awsandt
axat
ionoft
he

West
ernandEur
opeancount
ri
es,
especi
all
ytoourcol
oni
zer
swhot
aughtust
hei
rlanguageand

senseofgov
ernmentamongstourcount
rymen

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