police-double-standards

Philippines Tax Increases Are Guaranteed to Destroy Economic Gains

The recent announcement of a 15% increase in VAT and the removal of exemptions is going to hit all Filipinos really hard.

It will also erase any economic gains made by ALL previous administrations and take the Philippines into Venezuelan territory.

Instead of letting the market determine the most efficient use of capital, the Philippine state has declared that is the all knowing repository on what is best for customers of infrastructure, health, and education.

We have already seen how this will play out in previous regimes – and yet this current regime thinks it will achieve new results from the same inefficient tax and spend policies.

Here’s a fearless forecast on what’s gonna happen:

  • Overpriced and delayed infrastructure projects awarded to cronies
  • A reduction in consumer spending due to less disposable income
  • A reduction in the quality of life

Hard nosed observers of realpolitik note that the legitimacy of any regime is based on economic well-being. People are often times willing to give up their liberties in exchange for economic security. However, when new taxes are imposed, people are being killed in wild abandon – something’s gotta give. It’s not going to be a question of IF but a matter of when.

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5 Comments

  • 787Toro007Hyden9999.999 says:

    Death and taxes are inevitable. Tighten your belt. “The more things change, the more they stay, the same” !

    • BongV says:

      Taxes are levied on you because you gave your consent. The question is whether you have the balls to withdraw consent. Death is an illusion – the vessel dies, but consciousness is eternal.

  • Philip says:

    HAHAHAHA and where exactly did you hear about this 15% taxation? Ikaw lang ata nakarinig ng balitang yan. Duterte admin actually wants to cut on tax especially for the working class! Mga Liberal lang ang me gusto ng higher taxes

    • BongV says:

      Oh you mean, you aren’t aware that in Aug 2016 there was a proposed 15% VAT increase?

      Heto, kailangan mo yatang ispoonfeed 😀

      VAT increase to 15% looms
      Cabinet also pushes for oil tax hike

      posted August 15, 2016 at 12:01 am by Christine F. Herrera
      THE government plans to increase the value-added tax or VAT on goods and services from 12 percent to 15 percent and raise the excise tax on fuel from P4.53 a liter of gasoline to P10 a liter to fund President Rodrigo Duterte’s first national budget of P3.35 trillion, which is 11.6 percent higher than this year’s spending plan.

      Highly placed Palace and House sources said the Cabinet Revenue Cluster headed by Finance Secretary Carlos Dominguez is also considering lifting VAT exemptions on 30 products and services, and 13 types of transactions.

      http://thestandard.com.ph/news/headlines/213333/vat-increase-to-15-looms.html

      What have you been doing – scratching your testicles?

  • davmil says:

    Not that it’s not needed, but DU30’s proposing to double the army & police & teacher’s salaries and benefits. Going to have to pay for that somehow.

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