Senator Sonny Angara. INQUIRER FILE PHOTO
Senator Juan Edgardo “Sonny” Angara remained hopeful that President Benigno Aquino III would change his mind about the proposed lowering of income tax rates, which the latter described as “pogi” (charming) bill.
READ: Aquino meets with Angara, Quimbo to discuss income tax cuts
“We hope he can still change his mind because indexation of taxes to present day values is something actors all over the political spectrum, whether left, right or center, agree upon,” Angara said in a text message on Tuesday.
“Kahit mga ekonomista, propesor, negosyante, obrero sang-ayon na hindi na napapanahon ang batas sa buwis,” he said.
(Even economist, professor, businessman and worker agree that tax rates are not timely.)
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, insisted that indexation of taxes was long overdue “because 2015 is no longer 1997.”
“And it’s patently unjust for regular people and regular employees to be taxed so heavily,” the senator added.
Angara earlier pointed out that under the National Internal Revenue Code of 1997, individuals with taxable income of over P500,000 are taxed with a fixed amount of P125,000 plus the 32 percent of the excess over P500,000.
“P500,000 in 1997 does not have the same value today due to inflation. P1 in 1997 when adjusted for inflation is now worth only 44 centavos,” he said in his previous statement.
“Middle-income earners, who were mostly taxed at 25 percent in 1997, are now pushed into the top tax bracket at 32 percent together with the billionaires of our country because of our outdated tax system. Is this equitable and progressive? Clearly, it is not,” the senator added.
READ: Angara files compromise tax cut bill
However, Aquino stood pat against reducing the income tax rates. RAM