A more positive view about Train Law
You are probably familiar with Train Law (Tax Reform for Acceleration and Inclusion (TRAIN) Act, officially cited as Republic Act No. 10963) because it has been all over the news since it was signed by President Rodrigo Duterte. The prominent feature of the tax reform is that earners of ₱250,000 annually or ₱21,000 monthly and below are exempted from paying personal income tax . This includes minimum wage earners, who were also exempted in the former tax system. Meanwhile, those earning over ₱250,000 have tax rates following a set PIT schedule. Basically, greater income is taxed at higher tax rates.This means that low to middle income-earners get to have a higher take home pay, while high income-earners have a bigger contribution to tax revenues.
Different reactions from the Filipino people arises because of this law, for some it is unfair and a burden because they will be paying taxes while other will be exempted from it. Though it is somehow unfair for others who will do their taxes contributions, it is more helpful to look on the brighter side of it.
First, this law lessen the burden of low to minimum and middle earners Filipino who mainly rely on their monthly salary, on the other hand those earner who are part of the bracket that needs to contribute has a greater capacity and their earnings are still considered enough and or sustainable. Second, when the low to minimum and middle earners becomes more capable of providing and paying for their needs, the lesser burden it is for the government. Third, if you are a part of those who do their contributions, it is better to look at the brighter side that you are contributing to the progress of the country-more establishments, much useful programs and the like. Although prices of commodities has been going up and down, complaining about this law will not help, it is better to find better ways to improve and help the situation. For the government side however, they should start doing programs to give aides for our local farmers for them to yield more crops, fisherman for their fishing because the higher the supply the lower the price will be.
In general, all we can do is participate and make sure that we do our part for our country, a consolation will be- tax payer’s tax refund.