FORMER Congressman Teodoro “Teddy” A. Casiño said he is supporting calls to impose a higher tax on individuals with higher net worth.
At a media forum last Tuesday, the “wealth tax” is among the reforms that Casiño said is being pushed by “people economics.”
“Pondohan ang pag-unlad. Sa lahat ng bansang maunlad, susi ang suporta ng pamahalaan, susi ang pondo. Sa isang aspeto niyan ay dapat buwisan ng malaki ang may kaya, kaya sinusuportahan po natin ’yung ‘wealth tax,’” Casiño, a member of the 13th Congress, said.
[Fund development. In all developed countries, government support is key; funding is key. One aspect of that is the rich should be taxed heavily; so we support the wealth tax.]Casiño echoes several pundits pushing for the wealth tax. One of them is Freedom from Debt Coalition (FDC) President Rene E. Ofreneo.
Ofreneo said last week the FDC believes imposing a wealth tax could save the economy and reduce the regressivity in the tax system.
A wealth tax, he added, could “save both the poor and the rich.”
However, Ofreneo said imposing a wealth tax still depends on President-elect Ferdinand Marcos Jr.
“Hopefully, he will [impose a wealth tax], because it is a key to the survival of the economy” and his administration, he added.
‘Super-rich’ tax
SENATOR Sherwin T. Gatchalian has said the wealth tax merits attention and that the Senate “will study that very well.”
At the Lower House, House Bill (HB) 10253 or “Super-Rich Tax Act of 2021,” has been filed by lawmakers from the minority bloc. The bill proposes that individuals with taxable assets that exceed P1 billion should pay a 1-percent tax. The bill also seeks to impose a 2-percent tax on taxable assets over P2 billion and 3 percent for over P3 billion.
The Department of Finance, however, has warned that a measure to impose a “super-rich” tax would encourage aggressive tax avoidance schemes and drive out capital and investments from the Philippines. Finance Secretary Carlos G. Dominguez III has said that only Belgium, Norway, Spain and Switzerland continue to implement the wealth tax.
Dominguez added that while the wealth tax could initially lead to gains in tax collections, it could, at the same time, discourage growth and investments in the long run.
The outgoing Finance chief further said that diminished investments will result in far greater revenue losses and fewer new jobs to help Filipinos recover from the pandemic.
Dominguez added that there is a risk of capital flight if a wealth tax is passed in the country.