01 December 2013

A Pro-Labour, Anti-Rentier Tax Reform Agenda

Comment on Rappler's news

Source: Inquirer

Why is there no 'labour' or 'left', or even 'liberal', perspective calling for tax and economic reforms at this point??? Not necessarily in defence of Solenn, Manny, or other wage-earning celebrities, but essentially the urgently needed reforms that target the unjust and anti-labour economics (or anti-modern capitalist economics, if one is a true 'liberal') basis of the enduring Philippine taxation system.

Patterned after the principles of the US tax structure, the state-sanctioned political economy of Philippine taxation system is disciplining: 
  • the poor and middle classes through the E-VAT; 
  • the productive workers from contractual and regular ones to professionals and celebrities who pay taxes at developed country-, Scandinavian-, welfare state-level income tax; and
  • the creative enterprises from the SMEs and online entrepreneurs to the hardworking street vendors of the 'informal' economy and other wage-earners.
Source: Rappler

Why does the state not tax heavily: 
  • the 'useless rich' — the non-creative, non-innovative — among the country's landowning oligarchs whose power and wealth are derived from land and the real estate economy; 
  • the FIRE sector — finance, insurance, and real estate — whose wealth comes more from capital gains and not from hard labour; and 
  • the rentier capitalists among the monopolists and oligopolists in the Philippines like Lucio Tan and his ilk??? 

Why put the burden onto labour and off capital?!?!

BIR's emphasis on the 'fear factor' and 'civic duty' must be challenged not for the agenda of civil disobedience but for the objective of deepening real policy reforms that are founded, inter alia, on the principles of a democratic state's obligations in tax relations and the state's important role for the realisation of social justice and socio-economic development. The critical mass must continue to be stimulated and sustained and hopefully be supported by some well-meaning and principled organised political forces and labour and social movements.

Here's a friendly advice: Do away with the bankrupt framing of socio-political issues along "pro- versus anti-PNoy" lines, and we will understand clearly the real conditions of our society and be able to propose and advance progressive reform agenda for social change!

No comments: