‘Workers should benefit from corporate tax cut’

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House senior deputy minority leader and Buhay Rep. Lito Atienza on Thursday said corporations should be able to pay their employees higher wages once Congress slashes the corporate income tax rate from 30 percent to 25 percent. He added that corporations are bound to generate substantial cost-savings from the income tax rate that they can use to raise the living standards of their workers through higher salaries and non-wage benefits. “In fact, once we’ve lowered the income tax rate, we are hoping that many corporations will start voluntarily adopting the profit-sharing plan for employees that we’ve been proposing,” Atienza said. He cited a COL Financial Group Inc. study showing that the reduction in corporate income tax rate to 25 percent would “immediately lead to a seven percent increase in corporate earnings.” COL Financial is the country’s leading online stock brokerage firm and performs studies on the impact of policy changes, including tax reforms, on some of the biggest corporations whose shares are publicly traded on the Philippine Stock Exchange. Atienza is author of House Bill 2625, which proposes to require all corporations to distribute at least 10 percent of their annual net income to their employees as profit share.

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