4 April 2005

1. I believe the government is justified in asking for an increase in existing tax rates, as in Value Added Tax (VAT), as well as the imposition of new ones.
2. The government should not resort to cheap propaganda tricks (obviously faked "Pro-VAT" rallies, advertisements, etc.) to convince the people of the need for additional taxes. These things only make the people more apprehensive and pissed at the government.
3. the reason for the current dept and budget crisis of the Philippines, aside from corruption, is that the government spoiled the people. Since independence, the government has relied on borrowing instead of raising taxes when its expenditures increased. When it was time to pay a previous loan, the government, out of "concern" for the poor Filipinos, simply borrowed again to pay that debt. This system (sort of) worked for awhile, but the time came when the government had too much debt. but because it still did not want to displease the people, the government started to allocate a larger part of the budget to paying the debt, thus sacrificing the quality of other more essential services like education and healthcare. Today, however, President Gloria Arroyo seems to be determined to ask for new taxes, a position that's currently making her look like the devil in the eyes of a lot of people.
4. to prevent a repeat of this problem, the government, after raising taxes, should improve tax collection, go after tax evaders, and minimize corruption. Also, to some extent, it should try to be less kind to the people.