Tuesday, March 01, 2005

Filipino lawmakers here's a sample of cutting income tax

The wealth of the Philippines can be achieved only by and with the creative minds and activity of each and every Filipino in the Philippines.

To stimulate the economy and create revenues, Philippine lawmakers must cut taxes, reduce tariffs, reduce regulations, open trade and strive to make transactions by all government officials transparent, to curb corruption.

Cut taxes so the massa has money to spend and save after all necessities, entrepreneur has more money to expand their business and pay more taxes for the government coffers. Maximum income tax for all Filipinos should be 12%.

Economic statistics in other countries successfully improve their economies in a couple of years by cutting taxes, opening trade and curbing corruption.

Government officials do not create wealth and do not create jobs. Lawmakers do not forget what pork barrel your salary came from. To remind you, it came from taxing the people and maybe (shame to all Filipinos) from foreign aid and remittances of Filipinos abroad.

Law makers of the Philippine the tax table below must be cut in half and incomes below P13,000 exempted from taxes!

Below is the Individual Income Tax Table for Filipinos. Personal comments and computation in italics if taxes are cut in half, maximum tax of 12% and exemption of income below P13000.


If Taxable Income is: Not over P10,000 Tax Due is: 5% (that's P500. extra to spend or save if exempted)
Taxable Income >P10,000 but not > P30,000 Tax - P500+10% of excess >P10,000 (P1650. more to spend or save if taxed @ 5%)
Over P30,000 but not over P70,000 P2,500+15% of the excess over P30,000 (7% tax is P3650, not P8500. P4850. more to spend or save)
Over P70,000 but not over P140,000 P8,500+20% of the excess over P70,000 (10% tax is P10,650. not P22500, P11,850. more to start or expand a business)
Over P140,000 but not over P250,000 P22,500+25% of the excess over P140,000 (max. tax 12%, P23850 not P50,000, P26150. individual Filipinos can spend or save not for government coffers)
Over P250,000 but not over P500,000 P50,000+30% of the excess over P250,000 (and so on, and so on)
Over 500,000 P125,000+34% of the excess over P500,000 (individuals who make this much are smart enough to find ways not to pay this excessive payola)

source: http://www.boi.gov.ph/codbusiness.html