00000caa a22000003i 4500 UP-1685594773862408640 Buklod 20210406143029.0 m | | ta 210706s2015 xx a r |||| u|eng d 16551516 (iLib)UPBAG-00039679798 BAG rda eng ARTICLE-2970 Quimbo, Stella author. Rethinking the taxation of compensation income in the Philippines Stella Quimbo and Xylee Javier. [Quezon City] School of Economics, University of the Philippines 2015. pages 1-22 illustrations 23 cm text rdacontent unmediated rdamedia volume rdacarrier Title was 'Philippine Review of Business and Economics' until 1979. Title changed to 'Philippine Review of Economics and Business' from 1980-2000, and again changed to 'Philippine Review of Economics' since 2001. Includes bibliographical references (pages 20-21) The current individual income taxation structure of the Philippines significantly violates several norms of equity, with wage and salary workers (wsws) being disproportionately burdened by income taxes. An important source of inequity is the phenomenon of "bracket creep" resulting from the failure to adjust tax brackets by inflation. Another is the failure of a large number of the self-employed to pay the right taxes. We show that while inflation-adjustment of tax brackets results in revenue losses, an expansion of the tax base, a simplification of the income tax structure, and a reduction of tax rates can plug this leak. Using data from the merged 2013 Labor Force Survey and 2012 Family Income and Expenditures Survey, we estimate a set of tax rates that largely offsets the revenue losses from inflation-adjusted tax brackets. A key behavioral premise, supported by a multivariate logit analysis, is that the likelihood of paying income taxes increases with lower effective tax rates. Under the personal income tax structure proposed here, 36 percent of the income tax burden would be borne by the 2 top tax brackets?a seven percentage-point increase over the current share. Implementing these tax reforms, however, requires improvements in tax administration to accommodate the potential expansion in the tax base. Income tax Philippines. Taxation Philippines. Fiscal policy. Javier, Xylee author. The Philippine Review of Economics Vol. 52, no. 1 (June 2015), p. 1-22. Request full-text access via UPB University Library through https://forms.gle/KZjBv7aRtY6jiL5E9 FI UPBAG UPBAG-MAIN ARTICLE-2970 Analytics