Analysis

In the Philippines, with 22 percent of the population victimized of poverty, around

22.7 million people suffer and thrive to survive everyday to make a living for their
families and for themselves. As the proposed law was implemented with numerous
capabilities for the development of the country, it had one ultimate goal that the
government hoped to commit; the salvation of more than ten million poor Filipinos in the
country by the year 2022. However, among the eight respondents, none of them were
able to state the main purpose of the law and only focused on its flaws, with a few of
them pointing out on only the effects of it, both positive and negative. In addition,
despite the officials publishing a statement about the law to equate the tax system to a
much fairer structure for the benefit of both the rich and the poor (Department of Finance
2018), 100 percent of the respondents thought of TRAIN as a burden to the poor, with
one stating that it is “anti-poor” and “a failure” especially to the Filipinos suffering from
extreme poverty.

The thoughts of the acquired subjects of the interview surprisingly contradicts the
ideology of The Tax Reform for Acceleration and Inclusion Act (TRAIN), which is
expected to “set the staging ground to rescue 21 million Filipinos from poverty in the
long run from additional revenues collected by the government”; Chua K. 2018 Finance
Undersecretary. The Unconditional Cash Transfer Program (UCT) is a program created by
the government that is said to benefit about 10 million households in the country with
the distribution of 400 pesos monthly. Although this may seem like a good development
to benefit the poor, 100 percent of the respondents, who are classified as those under
poverty, are not beneficiaries of the said program. In addition to that, none of them even
recognized that such a program even exists. One individual has even stated that he’d
wish that the government would emphasize on this program and how to apply for it
because the additional disbursement could help them cover up for some expenses,
especially with prices on basic goods increasing. Among the eight respondents, only
three or 37.5 percent think that the UCT could benefit the poor, with the remaining 62.5
percent say that the program wouldn’t achieve salvation for the poverty with the
promised 400 pesos not being enough to cover-up the increase in basic goods,
especially to those with numerous members in a single household.

TRAIN has been implemented for almost a year from now, and as prices on
basic goods have increased, only one or 12.5 percent of the respondents had no
gradual difference in the expenses, with seven or 87.5 percent of the respondents
report on having an increase in expenses that then resulted to a decrease in savings.
These responses have shown the effects of TRAIN clashing with the unexpected rate of
inflation from the global increase in oil, which forces people to adjust to the increase in
prices, including those suffering from poverty in the country. The adjustment in the
increase of prices from inflation led 100 percent of the respondents to cut down certain
expenses, forcing them to change the way they consume what they used to. This
phenomenon would be in favor to the International Diabetes Foundation, since among
the acquired subjects, four or 50% have said to cut on expenses on rice and sugary
drinks such as soft drinks and juices. Although, this would have also mean that 50% of
the respondents have cut on contributing to the income of sari-sari and carinderia store
owners, which 40% of it come from the indicated sugary drinks according to the
Philippine Association of Stores and Carinderia Owners (PASCO). It is also relevant to
know that majority of these store owners are also labeled as those under the 22 million
people under poverty in the country.

A published article stat that the government had specified TRAIN as not the sole
cause of inflation in the country. The government officials have blamed the external
factors on the unexpected inflation, especially on Trump as indicated by President
Duterte on a DZRH interview. However, 75% of the respondents blame the government
officials and the executive branch for this implementation despite the people behind the
law knowing about the external factors affecting the law, with 87.5 percent of the
respondents indicating that they have had no positive results nor benefits from the
established law. One of the subjects in the interview stated that the only benefit that
he’d encountered was the exemption on taxes, allowing him to have an increase in
savings compared to when the law was implemented. On the other hand, the same
individual emphasized the little effect the tax exemption had due to the fact that
expenses on basic goods and transportation have increased, affirming the benefit of the
tax exemption as “parang wala lang”. Even on TRAIN’s first year or production in the
country, with the government promoting it as the key to developing the macroeconomic
state that would conclude to good job creation and faster poverty reduction, all of the
respondents have not felt the drastic impacts on neither the economic nor
macroeconomic state of the country, and instead, the only thing felt by the acquired
respondents is the tax exemption and the increase in prices, which seem to also be
contradictory elements to each other in function.

The government has not thought of respiting TRAIN, as they have advocated its
purpose as the solution to the numerous rates in poverty. However, of the eight
respondents, only one has thought of the law as a probability capable of reducing the
poverty rate in the country, but then added that the law must be looked over again due
to unexpected inflation rates from external factors. It is astonishing to see
straightforward answers of the respondents with a thought of the law as an absolute
inequality to poverty reduction, which are insights of individuals that TRAIN exists for; to
save them from indigence. All of the subjects have stated that there must be another
alternative for the reduction of poverty, especially since the global inflation on oil would
affect the impact of TRAIN. Revenue from taxes would increase funds for the projects of
TRAIN, but this would burden the poor due to adjusting expenses on commodities.
Majority of the respondents have said that the government should focus on creating job
opportunities rather that focusing on increasing revenue from taxes paid by the people,
including the poor. This thought supports the World Bank’s statistics on the economic
state of the country, which suggests that the country must yearn for education and
productivity in employment especially in the agricultural sector, but the government has
focused TRAIN on collecting revenue from taxes on its first year rather than proving its
disbursement on funds for the promised projects from the law. A few of the individuals
stated during the interview that the officials who are positioned behind the law should be
replaced, and that the Philippines must have a more disciplined system in order for the
country to strive for development. There may have been thoughts about how necessary
the increase in taxes would be to fund the promised projects of TRAIN, but with its
increase on certain targeted products that most of the poor consume, TRAIN’s ideology
of poverty reduction would equate to uncertainty if individuals that are poor have to
sacrifice savings despite the exemption on taxes, especially to the 5.3 percent or above
5 million individuals who are unemployed up to date.