UP Economist Explains Need for New Taxes

From BusinessWorld Online

Sometimes, the enemy of the good is the perfect - University of the Philippines economist Felipe M. Medalla told a meeting of the Chamber of Thrift Banks.

For example, there is no such thing as new taxes that hurt only rich tax evaders. Tax measures that hurt some but help many, if they finance good spending, may be superior to doing nothing, he added.

It may become necessary to impose new taxes or reduce the granting of tax incentives.

He proposed fewer perks; higher sin, fuel, value-added and real estate taxes along with a reduction in the income taxes of wage and salary workers who bear 95% of the individual tax.

The government’s tax efforts also need to be improved, Mr. Medalla said.

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