PACKAGE 2 of the government’s Comprehensive Tax Reform Program (CTRP) may create “millions of new jobs,” or it may not. The measure has been passed by the House of Representatives as the Tax Reform for Attracting Better and High Quality Opportunities (Trabaho), or House Bill 8083. Mainly addressing corporate income taxes and fiscal incentives, it has much to recommend. According to Chua, a “significant reduction” in corporate income taxes will encourage job creation rather than cause job losses in spite of the streamlining of fiscal incentives. Economic policymakers cannot be unmindful of the public’s great skepticism at present over the effect of tax reform on the economy, and should be careful to present clear, consistent, and verifiable claims about what tax reform can or cannot achieve.

Source: Manila Times September 26, 2018 16:41 UTC