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Anti-tyranny group assesses Duterte’s laws and bills

Days before President Rodrigo Duterte’s third State of the Nation Address on July 23, the Movement Against Tyranny gathered in Quezon City to assess the government economic policies and Congressional bills.

Economic experts, legislators and legal luminaries presented before the forum their assessment of Duterte’s tax reform law as well as efforts to amend both the Human Security Law and the Constitution.

TRAIN-driven rising cost of living makes wage hike urgent

Research group IBON said that tax-driven inflation is making the meager wages of poor Filipinos fall even further behind the rising cost of living.

The group said this makes it even more urgent for the government to immediately raise wages even as it revisits the Tax Reform for Acceleration and Inclusion (TRAIN) law behind the increase in consumption taxes.

The Duterte administration would be insensitive if it continues to resist the clamor for a decent national minimum wage, the group added.

IBON said that accelerating inflation has increased the family living wage (FLW) in the National Capital Region (NCR) and elsewhere.

IBON computations show that as of June 2018, a family of six needs Php1,175 to meet their basic needs, while a family of five needs Php979.

The FLW has increased by Php65 for a family of six and by Php54 for a family of five in June 2018 from the same period last year.

As it is, said the group, the NCR nominal minimum wage of Php512 is falling even further behind the rising cost of living.

The NCR nominal wage is only 44 percent of the FLW for a family of six, and 52% of the FLW for a family of five with a wage gap of Php663 (56 percent) and Php467 (48 percent), respectively.

The wage gap will continue to widen as inflation erodes the minimum wage.

Reacting to economic planning secretary Ernesto Pernia who said that a wage hike is not necessary, the group said that an immediate wage hike will help poor Filipinos cope with price spikes.

The Duterte administration can respond to the demand of labor groups for a Php750 national minimum wage.

IBON stressed that there are enough profits in the economy and among corporations to support the substantial increase in the minimum wage needed by workers and their families.

IBON also belied claims by the country’s economic managers in their joint statement on the June 2018 inflation that TRAIN’s reduction of personal income taxes, cash transfers, and allocation for free social and economic services “should help in coping with the rising prices of goods.”

The group said that their assertion that TRAIN “increased the take-home pay of 99 percent of income tax payers” is grossly deceitful because they know that only around 7.5 million or one-third (33 percent) of Filipino families are income tax payers.

Of these, some two million were already exempt from paying income tax even before TRAIN because they were only minimum wage earners.

This means that 17.2 million or over three-fourths (76 percent) of Filipino families suffer inflation but without any increased take-home pay.

IBON also said that the government should stop hyping TRAIN’s cash transfers because when they are ended by 2020 the higher prices of goods and services due to TRAIN will remain.

The group said that the Duterte administration’s unrepentant defense of TRAIN is daily affirmation of its callousness to the plight of tens of millions of poor Filipinos and its refusal to replace TRAIN with a more genuinely progressive tax package that is unafraid to tax the rich. #

 

Citizens speak against TRAIN law

Ordinary citizens speak on the Rodrigo Duterte’s Tax Reform for Acceleration and Inclusion Law, explaining the poor are affected the most by the inflation caused by the measure.

TRAIN was among the issues condemned by activists as they commemorated Philippine Independence Day with a protest action last June 12.

Slow TRAIN cash transfers highlight govt’s insensitivity–IBON

“The poor will get relief about three months into suffering TRAIN-induced price increases with millions of others only getting it much later.”

 Research group IBON said that the slow implementation of the Duterte administration’s social mitigation measures including its cash subsidies highlights how these are just an afterthought to cover up how the Tax Reform for Acceleration and Inclusion’s (TRAIN) program is anti-poor and pro-rich. TRAIN was railroaded last year to already be able to raise revenues starting January 2018 even if the supposed mitigation measures were not yet clear.

This is in reaction to the Department of Finance (DOF) announcement about the looming implementation of the government’s unconditional cash transfer (UCT) to supposedly help the 10 million poorest Filipino families cope with the impact of TRAIN. The DOF said that the 4.4 million existing Pantawid Pamilyang Pilipino Program (4Ps) beneficiaries and three (3) million indigent senior citizens will start receiving the Php200 per month cash subsidy in March. The balance of 2.6 million households are supposed to start receiving theirs in August.

IBON executive director Sonny Africa noted that the DOF was last year quick to undertake the staff work for raising taxes on the poor and giving income tax relief to the rich. Yet, in contrast, it was grossly unprepared to implement any of the supposed social mitigation measures even nearly two months into the law’s effectivity. As it is, the poor will get relief about three months into suffering TRAIN-induced price increases with millions of others only getting it much later in August or after eight months.

Africa also said that the DOF was merely scrambling to report 10 million helped “no matter how sloppy the figures.” “The numbers don’t even add up,” he said, “because many of the 3.3 million poor elderly will likely already be among the 4.4 million CCT beneficiary households so double-counting is already happening, more so two or more elderly are in these poor households.”

Meanwhile, TRAIN’s promised fuel subsidies for public utility vehicles (PUVs), fare discounts for the poor and other social mitigation measures still remain unrealized, said Africa.

Lastly, Africa said, it is worth repeating that the cash subsidies are temporary and only from 2018 to 2020. “These are also the three years when oil taxes keep rising and prices keep getting pushed up higher and higher,” Africa noted. “The real TRAIN shock happens in 2021 when the UCT gimmick is gone but the prices that the poor pay for their basic goods and services will be immensely higher,” he said. (IBON News / February 27, 2018)