The su­per-rich

Manila Times - - OPINION - RONQUILLO

unions to in­crease their bar­gain­ing power to ad­just la­bor’s share of the in­come gains. In­sti­tu­tional sup­port from the state to usher in a more la­bor-friendly en­vi­ron­ment did not come about, hence, the steady weak­en­ing of la­bor’s bar­gain­ing power and the steady rise of cap­i­tal’s share of the yearly in­come and pro­duc­tiv­ity gains.

Mr. Aquino’s six years in power el­e­vated sev­eral mem­bers of the Philip­pine rich to the sta­tus of “those- who- can- buy- a- small coun­try-rich.” That list will surely in­crease un­der Mr. Duterte.

The best is yet to come for the su­per-rich

The state of Cloud 9 in the world of oli­garchs and plu­to­crats is fur­ther pushed to a new level, buoyed by the com­mit­ment of the DU30 ad­min­is­tra­tion to an­chor Phase II of the sup­posed tax re­form pack­age on the re­duc­tion of the cor­po­rate tax rate. From 30 per­cent, the plan is to re­duce it to 25 per­cent, or lower.

Noth­ing lifts the op­ti­mism of the rich more than the prom­ise of a cor­po­rate tax cut and they feel noth­ing will stop the DU30 ad­min­is­tra­tion from pur­su­ing this course of ac­tion.

A cor­po­rate world awash with en­vi­ron­ment to push for a cor­po­rate tax cut. But the DU30 ad­min­is­tra­tion said it will be done. Mostly likely, it will be done.

Cor­po­ra­tions, with their armies of lawyers and ac­coun­tants, have this abil­ity to rou­tinely pay be­low the 30 per­cent tax rate. Some say the ef­fec­tive cor­po­rate tax is even be­low the planned 25 per­cent. 25 per­cent, the ef­fec­tive rate that the cor­po­ra­tions will pay, will go down sub­stan­tially.

Even the prom­ise that the in­cen­tive scheme granted by the Board of In­vest­ments and other gov­ern­ment agen­cies will be ra­tio­nal­ized to off­set the rev­enue drops from the cor­po­rate tax cut will not come about. The main in­cen­tive to the rich in any mar­ket econ­omy comes in the form of a cor­po­rate tax cut and that is what they truly covet.

Dur­ing the term of Mr. Aquino, I had a piece that said the gov­ern­ment “was for the rich, by the rich and of the rich.”

Noth­ing much has changed un­der Mr. Duterte. I re­peat. If the su­per-rich had bliss un­der Mr. Aquino, they have heaven un­der Mr. Duterte.

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