TAX TALK Taxes like death are necessary evil. The way our BIR goes after tax payers with religious zeal suggest that its alma mater, the epitome of motherhood since of course necessity is the mother of invention. Thats convoluted logic for you, but for us dummies who have only the faintest idea of taxation, and least of all how our taxes are being spent or unspent that is enlightenment. Whether its true that DAP its perked up the economy is not only an issue of fact but a political one. Taxes raise revenue so the government can, at times when the economy is slowing pump prime the economy by putting money for people to spend via what they calldeficit spending The theory is economy grows by the amount of money spent; consumer spending for example which lately has been touted as one cause why our flagging economy suddenly rose to be number two in Asia. Not to forget of course the OFWs remittance. But if there is inflation(too much money in circulation), tax increase would reduce the ability to spend and control the balloon, so to speak. But it is not only spending which spurs the economy to grow; production, and wealth creation, and the ability to manage it, generating employment and disposable income which later might be taxed by the government. This is the so-called supply side economics, in contrast to the economics theory of British economist John Maynard Keynes--the theory that its spending that stimulates economic growth But the point here is government and tax payers have a covenant: the well-being of the nation so that taxes not merely become a necessary evil, but a cherished good.
Posted on: Sun, 17 Aug 2014 23:32:40 +0000
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