The decision of Congress to no longer tackle bills lowering income tax rates in the country is “an example of the indecisive and insensitive governance by the Aquino administration,” according to Vice President Jejomar Binay.
Binay, at the same time, chided former Interior chief Manuel Roxas 2nd-also the ruling
Liberal Party’s standard-bearer in the 2016 elections–for not having made up his mind on whether to support the tax bills despite the proposals having been authored by Malacanang’s “allies” in the Senate and House of Representatives.
Should he win the presidency in next year’s polls, the Vice President said, he will make a priority the passage of the lower income tax bills in the first 100 days of his term.
Lower income tax rates, Binay added, mean workers will have more cash to take home, giving them greater purchasing power and boosting businesses in the process.
Unlike candidates from rich families who do not see the urgency in lowering income tax rates, he said, he will certify the bills adjusting the current tax rates to inflation as priority legislation.
The Vice President said tax rates have become unreasonable because they have not been indexed to inflation.
He added that those with higher wages should pay higher taxes than those earning less.
“The peso, when the tax code was passed 19 years ago, is only worth 43 centavos today,” Binay noted.
He said the income tax system must be fair–those with higher wages should pay higher taxes than those earning less.
“Inflation has so reduced the value of the peso that the top income tax bracket has not changed since 1986. Thus, those earning P500,000 a year and millionaires pay the same tax,” Binay pointed out.