Richer and more powerful people have historically been able to manipulate tax laws to

their advantage. This frequently leads to tax deductions, exemptions, and loopholes that

mostly benefit the wealthy. Furthermore, lobbying and campaign finance methods can result

in tax laws that support the interests of the wealthy, making it more difficult to enact

effective progressive taxation.

In many cases, rich people frequently have access to a wider range of financial resources,

as well as the capacity to lawfully decrease their tax obligations by using complicated

financial instruments, offshore tax havens, and other financial strategies. Furthermore, low-

income people may be disproportionately affected by regressive taxation since they spend a

larger percentage of their income on necessities like food and shelter.

Inequality in society and the economy has continued. The wealthy have easier access to

social networks, job opportunities, and education, which helps them amass riches over time.

The poor, meantime, confront obstacles to economic mobility, which makes it challenging

for them to better their financial status and get out from under-taxation.

It may be supported by certain societal attitudes and narratives that those with lower incomes

are somehow less deserving of or accountable for their financial status. As a result,

progressive tax laws and social assistance programs may have less popular support, further

adding to the burden on the poor.

Another factor to consider is how taxation regimes have evolved historically. For

instance, numerous tax schemes were developed at a time when societal norms and political

systems were biased in favor of the wealthy. These systems might have become established

over time, making it difficult to implement meaningful improvements.

 Wealthy people may have the resources to use intricate financial techniques or tax law

loopholes to participate in tax avoidance and evasion activities. This enables them to

drastically lower their tax burden, placing a greater burden on the less fortunate members of

society.

A thorough strategy that takes into account the political, economic, social, and cultural

facets is needed to address these concerns. Closing loopholes, enhancing tax compliance, and

tackling more general problems of economic and social inequality can all contribute to the

development of a more equitable taxation system, where the burden is divided more

equitably across all facets of society.

References

(2017, December 17). The tax reform for acceleration and inclusion (train) Act. TAX

REFORM DEPARTMENT OF FINANCE

https://taxreform.dof.gov.ph/news_and_updates/the-tax-reform-for-acceleration-and-

inclusion -train-act/

Candelaria, J. L. P., & Alphora, V. C. (2018). Readings in Philippine History (1st Ed.). Rex

Book Store Inc. Daoey, D. D. A. (n.d.). The Comprehensive Tax Reform Program. CTRP.

http://www.oocities.org/ifuntok/ctrp/

Diokno, B. E. (n.d.). Tax system: make it fairer, simpler, and more efficient. Per SE.

https://econ.upd.edu.ph/perse/

NTRC TRJ-6 (2017). Proposed Reforms on the Value-Added Tax. SERP-P PIDS GOV.PH.

https://serp-p.pids.gov.ph/publication/public/view?slug=proposed-reforms-on-the-value-

added-tax