Sunday, May 15, 2005

A Case for Flat Taxation

You work eight hours a day, five days a week, sometimes six, and sometimes you put in overtime, paid or unpaid. You are in a two-income family struggling to make ends meet: paying the rent or the amortization on your home; worrying about the college education of your kids; buying the necessities for food and clothing.

Your government taxes you a portion of your salary and in addition, taxes you for everything that you consume; taxes you for every transaction that you make, from birth 'til death.

Your government is duty-bound to protect your life and property and in exchange, taxes you to perform this duty.

However, there is a catch: do you really trust that government is doing its job? Who takes responsibility for you and your children when you are in trouble? Do you feel safe with the police force that your taxes pay for? Will government take care of you when your children get sick?

And finally: do you trust this government will spend your taxes wisely?

The answer, most probably, is NO.

It is now time to take control over what you have responsibly worked for and earned. You pay for your family's needs in education, health, and sometimes, even for security.

Many of us citizens have demonstrated that at many times, we have succeeded DESPITE government.

So why pay more taxes when we don't rely on government to take care of the things we do take care of? Why allow ourselves to be a taxed a third of our income for working harder and making informed decisions on our lives?

We need a simple flat tax of no more than 10% for government services that we cannot handle by ourselves. With a bigger consumption tax being levied, this will give all of us citizens more flexibility in managing our money.

By lowering taxes, Filipinos have more opportunities to spend, save, and even invest in our economy and create jobs.

A simple rate means simplified administration – easier to calculate, easier to collect, and easier to SPOT CHEATING. A simple rate means people have even less incentive to cheat. No exceptions, no loopholes.

A simple rate creates an impetus for government to regulate spending and to become more efficient, and to get out of areas where government involvement is not needed. Simple taxes, in the end, would lead to simpler and more efficient government.

We need a simple FLAT TAX RATE NOW, not in the future.

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