Angara seeks middle ground on proposed income tax cuts

TO break the impasse, Senator Juan Edgardo “Sonny” Angara is urging the Aquino administration to come up with a counterproposal on the proposed lowering of personal income taxes, “so that we can find some middle ground.”

Angara, chairman of the Senate committee on ways and means and one of the proponents of a bill seeking to lower the personal income tax rates, issued the statement a day after President Benigno Aquino III’s refusal to endorse the measure.

READ: Aquino not keen on cutting taxes

“Matagal ko nang sinasabi na pag-usapan. Kung ayaw niyo ng ganito kalaking bawas, anong porsyento ang komportable sa inyo? Hindi naman kasi pwede na, ‘Basta ayaw namin. End of discussion,’” the senator said in a statement.

He said one proposal worth exploring to make the bill acceptable is to move the effectivity date.

“We can discuss when cuts will take effect. We can delay it, just tell us when, and we will study it. Ayaw niyo ng January 2016 ang effectivity, so kelan? Gusto niyo unti-unti hindi biglaan, tell us so we can agree on a schedule,” he said.

If projected revenue loss is what is holding back the government from endorsing the tax cuts, then Angara said, “we can pinpoint non-urgent expenditure areas which can be cut.”

“Hindi naman kasi more or new taxes ang pwedeng pangtakip sa tax cuts. Pwede rin naman kasi bawasan ang gastos. We can attack that concern from the expenditure side. So the deal can be like this: We cut taxes by one billion. But we can cut expenses or fat in the budget by the same amount,” he said.

“The justification we’ve been hearing is that we need taxes to fund the budget. So if we do away with unnecessary expenditures, will you now be amenable to tax cuts?” he further said.

During the hearing of the Senate finance subcommittee on the proposed budget of the Department of Finance, Angara and Senate President Pro Tempore Ralph Recto questioned the proposed P30 billion “budgetary support” next year for the Land Bank and Development Bank of the Philippines, the same amount needed for the proposed tax reform measures.

Aside from the P30 billion subsidy for the two state-run banks, Recto pointed out that the DOF’s proposed budget contained another P30 billion for risk management fund.

“Wala akong nakikitang emergency na kailangang bigyan ang Landbank at DBP ng P30 billion …but one thing is for sure, 5 million people could benefit from the reduction of income taxes…” he said.

Angara echoed Recto’s statement, saying the budgetary support for the two banks was not that urgent.

“I’m definitely not in favor. Hindi masyadong urgent ’yan. Mas urgent yung umento sa sahod sa paraan ng pagbababa ng income tax na magpapagaan ng buhay ng halos limang milyong Pilipino,” he said.

The senator likewise criticized the allocation of some P3.216-billion just for the construction of new buildings of the Bureau of Internal Revenue (BIR).

“It’s disgraceful. You are depriving people who don’t earn a lot yet we’re spending the government’s money like it’s our own personal money,” he lamented.

Angara remained hopeful that the President would reconsider his position on the bill “given the right information.”

“I am an optimist. I believe in the better angels of our nature. I think that even those who are skeptical would come around and join our cause,” he said.

“Ituloy natin ang pangungumbinsi. Kung naniniwala tayo na tama tayo, bakit tayo hihinto? We will be resolute in our advocacy but respectful.”

Angara said the President might have just been given an incomplete picture on the proposed tax reform bills.

“I am still hopeful. Ang rekomendasyon nila noon sa Pangulo, i-veto ang pagpapataas ng exemption sa bonus. But still, the President signed it,” he further said.