Final tax bill vote set

Final ratification of the Tax Reform for Acceleration and Inclusion (TRAIN) bill is set for Monday, December 11 in Congress. “We expect to have the bicam report ratified by the Senate on Monday before we adjourn so we can have it in place by January,” Senate Minority Franklin Drilon told reporters.

After each chamber of Congress passed its own version of the TRAIN bill, it went to a special bicameral conference committee (“bicam committee”) to iron out the differences between the two bills. So far, conferees have compromised on a number of issues, and they have released five specific measures that they have agreed upon.

First, there will be tax exemptions for workers making less than P250,000 per year. Second, there will be VAT-free leases on housing units below P15,000 per month month, and it includes condo dues. Third, people making more than P8 million per year will pay P2.41 million plus 35 percent of the excess of P8 million. Fourth, the income tax return will be reduced to two pages for easier compliance. And finally, there will be a P5 milion standard deduction on estates and an additional P10m deduction on family homes.

The bicam committee met as recently as Friday behind closed doors to work on producing a final bill that will be sent back to both the House and Senate for a final ratification vote.

“The P250,000 income tax exemption is close to becoming a reality because both chambers of Congress agreed on the provision,” said Sen. Sonny Angara, chair of the Senate committee on ways and means, on Saturday. According to Angara, 6.8 million of 7.5 million individual taxpayers would be exempt from paying income tax, starting in January.

“Contentious issues” delayed until end of negotiations

According to The Philippine Daily Inquirer, “Contentious provisions such as the excise tax on petroleum, coal and sweetened beverages would be tackled last by the bicameral committee, Angara said.”

As we reported on Nov. 28, within the TRAIN bill is a provision which would skyrocket taxes on sugary beverages such as soda pop and iced tea. The inclusion of the sugary beverage tax follows political movements orchestrated by billionaire Michael Bloomberg targeted to municipalities and countries around the world. The goal of the sugary beverage tax is to increase revenue to government coffers, even though advocates claim it is for public health improvement.

Not only is the tax unnecessary, but the issue is being framed in a fundamentally deceitful way.

The failure of the sugary beverage tax elsewhere

Attempts by governments at all levels in the U.S. to pass a sugary beverage tax have largely gone up in flames.

In 2009, the Obama Administration explored levying an excise tax on sugar sweetened beverages as part of passage of Obamacare, but the proposal was abandoned during negotiations.

The next year, New York State considered a soda tax; however, a campaign from economists opposed to the proposal helped sink the measure.

In the California State Legislature, soda tax proposals have been introduced several times, but none have passed.

In June 2013, the city of Telluride, Colorado proposed a one cent per ounce soda tax. However, voters rejected it in a referendum vote, with 68% of voters voting against it.

In November 2016, Santa Fe, New Mexico began considering a tax on all sugar-sweetened beverages, including soda, sports drinks, and iced tea, “to fund early childhood education.” However, voters rejected the proposal in a May 2017 special election.