Now we can look forward to a Merry Christmas

There is nothing definite in this life except death and taxes. These are the only things we can truly count on. Indeed, these days, there is no longer a pay envelope that is exempt from the phrase: “the tax man cometh.” This is especially true now with the BIR trying all forms of rules and regulations when it comes to collecting more taxes from every type of profession to make for what they keep calling a large deficit in tax collection in the previous years.

However, there is some good news when it comes to the ongoing tax saga in the country. It’s the approval of House Bill 4970 that is targeted towards 13th month pay, Christmas bonuses, and other employee benefits that are under P70,000. This was unanimously passed in the House by the 250 lawmakers present last week despite heavy opposition from the government tax officials and economic managers. The panel approved the consolidated bill to raise the tax exemption ceiling on government and private employees’ bonuses and other benefits after a 15-minute deliberation showing that they clearly knew which way they were going to vote. The bill passed raising the current P30,000 ceiling amount, an amount that has long since been outpaced by inflation.

I have to say that I am glad that our congressmen have seen the light and for once took the side of the workers in our society. Our workers are already working so hard throughout the year and are paying one of the highest income tax rates — the highest actually — in all of Asean so it’s nice to see that we can sometimes catch a break. The bill is now set to go to the Senate where it will hopefully be passed by the end of the year just in time to give everyone a break from tax burdens during the holidays. After all, these bonuses given at the end of the year are instrumental in a family’s earnings to help them have a good holiday and to help them catch up on their other expenses such as children’s tuition, savings, and more.

This is a welcome gesture in a long-drawn out and often times frustrating saga that is the tax system in the country. Once again, the BIR claims that this bill could possibly result in the loss of as much as P43 billion in revenue. I think it’s ludicrous to think that giving employees a one-month break at the end of a long and hard working year will collapse the country’s economy.

In fact, there are just so many things I don’t understand or can’t come to terms with in the way the current taxing systems are being run. The way that the BIR has been aggressively going after the middle class income taxpayers to pay even more tax this year has been quite evident. What perplexes me the most is that these people, or this percentage of taxpayers, already pay the bulk of income taxes collected by the government. Why should they be the ones paying even more? I can’t understand why the government or the BIR does not crack down on the big corporations or the extremely wealthy taxpayers who are obviously not paying their fair share? Is it because they feel these individuals or corporations can afford to pay lawyers and accountants to hide in their money in non-taxable avenues? Do they feel that is more prudent to go after the people they can actually get money from? At the end of the day, it just seems unfair.

But at least there is a bit of hope with the passage of this bill. I am not concerned with the possibility of lost revenue that the BIR is bemoaning. After all, I have long since said that we need to start learning to live within our means. It seems quite ridiculous to keep trying to take more and more money from the people when they are seeing nothing in return. Perhaps focus equally on putting those taxes to good and proper use before you keep asking for more.

There is a lot to be fixed when it comes to the current tax system, but at least employees and workers can now look forward to a Christmas bonus that will actually go to their families instead of to the government’s coffers — or worse, to the pockets of wealthy and corrupt government officials.

Another piece of good news is that President Aquino is now set to sign a bill providing mandatory health insurance for senior citizens. The signing of this measure will cap off the celebration of Senior Citizens’ Week, which falls under the first week of October. This is a welcome piece of news to me and I am happy to see that the country is acknowledging the hard work that its senior citizens have done their whole lives by giving them the recognition they deserve.

The House of Representatives and the Senate have passed the bill granting Filipinos aged 60 years old and above health insurance to be provided by Philippine Health Insurance Corp. (PhilHealth). Through this measure, senior citizens will be given insurance coverage regardless of economic status. Prior to this, the Expanded Senior Citizens Act of 2010 only granted insurance coverage to indigent senior citizens. Now, through this bill, insurance will be provided to everyone. Quezon Representative Angelina Tan said that this important piece of law is a token of appreciation for the hardworking senior citizens who have made an important contribution to society.

This is definitely an important piece of legislation for the elderly in the country. After all, even those who had private health insurance are no longer eligible for coverage past a certain age — usually 65 — which is ironic because this is when they usually need it the most and when the problems of old age arise. At least now there is a little coverage they can rely on in their twilight years. In fact, Tan stated that this bill is specifically to help our senior citizens feel more secure during the remaining years of their lives and is a guarantee they will have access to health services should the need arise. She also stated that it was our responsibility to collectively help treat our senior citizens with the respect and dignity they deserve.

Again, I can’t help but feel that this is such a poignant gesture and something that everyone will appreciate. After all, everyone reaches old age and it’s nice to know that there is someone looking out for them in the government.