Not only do our taxes disproportionately burden the poor
and benefit the rich, but they also yield too little revenue given the distortions they create. Needless to say, both problems need to be resolved soon. The changes in our taxation system have contributed a big impact to every citizen in our country. I can say that every decision has two possible outcomes it’s either positive or negative or maybe both.
Implementing the Tax Reform for Acceleration and Inclusion
(TRAIN) Law benefits the others while it is a burden for others. The existing tax structure, where different tax rates are imposed on different income levels and on different industries, could be one of the reasons hampering the full potentials of revenue collection by the government. Try to think of it, if the government impose a fix tax rate to all different income level and on different industries. The government can maximize the collection of tax payments and can save a big funds for public purposes, but here comes the entities and individuals that has low income, it is very hard for them to pay tax knowing the fact that their earnings are just sufficient to their needs. Another aspect of taxation that has a big impact to our society is the higher sin taxes. This increase in tax pushes the supplier, manufacturers, retailer to also increase their prices that later on leads to decreasing number of demand because of affordability. The purpose of this action is to control and regulate the consumer on using sin products especially in cigarettes. The government wants only to protect our welfare because it is in the sayings that “Health is Wealth”. Next is in donors tax, we all know that donors tax deals with donation and donation is a gratuitous action done by the donor. Lessening the tax rate in donors tax helps a lot the donee of the said donation. It is so inappropriate for the government to impose a high tax rate in which the transaction is beneficial to the welfare of its citizen. However, sometimes it is being used to unlawful transactions in order to avoid having big amount of tax payable.
Based on what I have observed, I can say that the
Philippine tax system is improving and really helps our economy to perform very well. I know it is not perfect but we can see that the government slowly bringing us wealth. The government was able to save enough funds to sustain the needs and to improve the community. Especially in this time of pandemic, the government really needs a fund to buy all the necessary medical supplies to serve our country. The government wisely uses its taxation power to improve the country at the same time protect its citizen. When we talk about the concept, principles, and theories of taxation that can be violated by this changes, I think the government doesn’t violate any of this matters. Everything is in accordance with the concept, principles, and theories about taxation. If the government continues to improve their taxation system our country can sustain every needs of the citizen in full capacity.