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1. Why is it that taxation in the Philippines is regressive?
- Philippines is considered to be having a regressive taxation because poorer people in this country pay greater percentage of their income tax than those of the richer people. The most regressive source of tax in this country is the gasoline, tobacco and liquor. We can really say so because, when the price of the gasoline in the world market increases, and so is in the local market which affects the price of other basic commodities such as food. Another reason why we suffer from regressive tax is that, almost everything in this country has tax. Even on the simplest matter of buying water to drink, or candies to eat, even kids pay tax for it. Unlike other countries such a s the United States, some of the states have exemplified medicine and groceries in the sales tax to reduce regressive tax.
2. What will happen of the government does not collect taxes?
- The mere fact that the Philippines collect too much or much taxes from the people, I can say that it is far better than not collecting at all because if the government does not collect tax, we will end up in hyperinflation. The money that all the people have will just circulate like a plain piece of paper or nickel. It is almost the same like the government just printed money without value. After then, we will end up sweeping money without value.
3. How can VAT and E-VAT raise enough revenue to help improve in social services?
- I think the main reason why we have the EVAT is to expand the government income so that there will be bigger budgets for all of its public sectors. They say that VAT alone is not enough to fund government projects. I don’t believe that we are poor, in fact I think that we are very rich, it’s just that some, not all politicians are sincere enough of their job as public servants. We have funds; they are not just used properly and wisely. These VAT and EVAT collects taxes from the people who buy goods. From the regular tax...
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