Where do our taxes go?
FINANCE secretary Carlos G. Dominguez III on Thursday, July 5, 2018 in Philippine Daily Inquirer, unveiled details of the planned and much-awaited tax amnesty program aimed at shoring up revenues to fund the massive infrastructure projects to be rolled out by the Duterte administration.
According to Dominguez, “this year, we hope to improve further our revenue collections with a proposed tax amnesty program. The program will help clear the dockets as well as enable the transfer of stranded real properties so that they can be made economically useful.”
He f urther stated that, “i n particular, we propose an estate tax amnesty where the government collects only 6 percent of the net undeclared estate tax for those who died prior to January 1, 2018.”
In short, the tax of those who live and pay is not enough, because those who live and fled do not pay their tax from their much more earnings, thus we have to taxed those who died. If it is to fund the massive infrastructure projects, I wish to see more concrete roads of the highest level that is unbreakable in the next 20 years or so.
I wish to see more parks than malls to encourage healthy lifestyle and convene senior citizens, welcome kids and accompany the young through organized sports and events in the park. I wish to see more usable infrastructures that glare the eye and screaming, “This is where your taxes go.”
But really, where do our taxes go? There are only two certain things in life--death and taxes, goes the popular saying. If you recently spent hours filling up tax forms, or are among those reminded that you pay personal income taxes of as much as 32 percent, you know that taxes are a fact of life.
The government collects several kinds of taxes, among them, personal income taxes, value-added tax, estate and donor’s tax, other percentage taxes, excise taxes, and documentary stamp taxes. It i s our personal responsibility to know which tax we should pay, and to compute it correctly. Forgetting to file and pay our taxes, whether willfully or otherwise is considered a crime.
No matter how hard it may be on
your pocket, the fact remains that taxes serve a purpose and the greater good. They ensure that we receive our basic needs. Taxes answer for all of government’s expenditures, including the running of those agencies that make it possible for us to access basic necessities and services. This includes water, power, roads, airports, and even the Metro Rail Transit. So, if your city does not have metro rail transit, chances are the tax in your area is not yet enough, or there are many evaders, or it is taking so long for your government to act, or they have different priorities, or worst, the tax has already been corrupted.
Tax help keep us safe. Our taxes are used to pay for the salaries of military personnel and policemen, who keep us safe and keep peace and order in our country. Because of tax revenues, both the training and equipment of security forces are upgraded, putting them in a better position to defend us. Tax keeps business costs low. When the government is able to collect enough taxes, it does not suffer a revenue shortfall which can otherwise affect the country’s economic fundamentals and prospects.
When our economic fundamentals are weak because of low tax collections, investor confidence softens, therefore affecting the business environment and raising our country’s risk rating. This, in turn, translates to higher interest rates which can only make i t harder for us to do business individually. ( Paid article)