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WHAT A COOL IDEA!
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I overheard this from a radio interview this morning. †Apparently, renowned economist, UP professor and former Budget Secretary Ben Diokno came up with this nifty proposal very recently. †From what I gathered, this proposal — which I will call the ‘Diokno Proposal’ henceforth — was born out of Professor Diokno’s frustration over the government’s inability to effectively collect income taxes.
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Immediately, the Diokno Proposal spurred public debate with seemingly equal fervor from the “aye” and the “nay” crowds. †UP†Professor Winnie Monsod is among the avid supporters of this idea (she was the one interviewed on Radio this morning).
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Count me into the “aye” crowd. †I am not an expert in such serious matters as economics and finance. †I am definitely not in the league of Diokno or Monsod. †As a common folk from the salaried class I think I am capable of recognizing a good idea when I see one. †This is definitely one of them.
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I did not catch enough of the interview on Monsod to get influenced by her well-informed argument. †In my simple mind I quickly came up with half a dozen of my own reasons why this is such a great idea:
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(1) †This is the most equitable way to collect taxes. †By taxing income, the only ones who conscientiously pay (because they have no choice) are the salaried class like me (sob). †Shrewd businessmen and professionals (not all of them, of course) generally get away with this. †By taxing our consumption instead of our income we all pay our taxes as we spend.
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(2) Taxing income is a “double whammy.” †For those who conscientiously pay, that is (again, the salaried class who do not have a choice). †Income tax is collected automatically even before we receive our salaries and wages. †And then we still pay taxes when we spend what’s left of our salaries and wages (sigh!).
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(3) †The Diokno Proposal may spur savings. †It’s a fact that the Philippines is among the worst countries when it comes to savings and investments by its citizens. †By putting part of our tax-free income into savings, we effectively avoid taxation, at least temporarily.
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(4) †The big spenders are taxed more. †That may not sound so right at first. †But let’s put it another way. †Taxation will be proportionate to spending. †Now that sounds right, right?†
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(5) †The Diokno Proposal may result to a streamlined, much efficient, and less corrupt BIR. †Why? †Simple. †Without having to collect income taxes the BIR may be streamlined to at least half its current size. †That’s just a ballpark estimate. †Can even be more. †With income taxes gone, no more corrupt tax assessors and creative tax consultants.
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(6) †If it’s from Professor Diokno, and Professor Monsod agrees with it, it must be good.
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CAVEAT: †Since this proposal came from Prof. Diokno it may not see the light of day under this present government. †Oh, well…
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Now, that’s just my two-cents worth. †It is two cents I considered spent so go ahead and tax it. 
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