Angara still pushing for income tax reform
SENATE ways and means committee chairman Senator Juan Edgardo M. Angara is still batting for tax reform despite the limited time remaining in Congress’ third regular session and the upcoming election season, he said in a statement released on Sunday.
“I’m still pushing for tax reform despite the clock ticking and political season fast approaching (I’m not a candidate next year). Government has money it cannot even spend because of absorptive capacity issues of departments. We could’ve done it already so why not a win-win reform where the working-class taxpayers are at the center,” Mr. Angara said.
Mr. Angara said tax reform can mean adding as little as P800 a month to the take-home pay of a new public school teacher, adding that because tax brackets and rates have not been adjusted since 1997, a new public school teacher’s take-home pay is less today than in 1997.
“Is that progress? These are real lives and real people. Government must offer real solutions to regular people otherwise growth is just a facade masking inequalities. We must aim for a society where the hardworking are rewarded and have a chance to move up,” said the senator.
Mr. Angara added income tax reform will result in more taxpayer spending, which will boost the country’s gross domestic product and government revenue.
“Government will also benefit because the workers will definitely spend the money, whilst government seems to be having underspending problems, having hundreds of billions of unused balance last year,” he added.
An income tax reform measure that will adjust the current tax brackets to inflation and change the seven-tier bracket into four after three years, is pending at the House committee on ways and means. —