No longer the sick man of Asia

This is something you don't get to read everyday. According to Steve Forbes, chairman and editor-in-chief of Forbes Media, as the Philippine economy continues its growth, the country will produce more billionaires. By the way, we are talking a billion US dollars not Philippine pesos. Currently there are seventeen entrepreneurs that have breached the one billion dollar mark. Some of them are already known to be wealthy ever since. Henry Sy, John Gokongwei Jr., the Ayalas, Andrew Tan, Enrique Razon to name but a few.  

Forbes added that as economies grow, incomes grow across the board as well. The key is a good political system and good economic growth. The country is no longer "the sick man of Asia" but a tiger in terms of Asian economies, when other countries seem to be in trouble. The country is slowly becoming the model that everyone else can copy. Who would have thought that? No one can argue that this upward trend in the economy happened during the Aquino administration. This is what Steve Forbes meant by a good political system. But according to him, it can be better. 

The country has the highest income tax rate in ASEAN, at thirty-two percent, aside from also being one of the most complicated. If taxes can be slashed and paying made simpler, along with keeping a good political system, then people will not avoid paying the right taxes. Corruption in government does nothing to help the economy. We have seen this since the Marcos administration. I wouldn't be surprised if the reason for the high tax rate is because a large chunk of it simply goes to corrupt politicians rather than for the benefit of the country and its people.

This is also why many do not like paying taxes because it only lines the pockets of these people. The billionaires mentioned are all legitimate businessmen, but there are billionaires that remain hidden because they just cannot explain where all that wealth came from.  

Slashing taxes may not be as simple as it sounds. Because the country has wallowed in corruption and poverty for so long, it will also take money to get out of it. Infrastructure has to be built, something that could not happen with past administrations as funds were always used "somewhere else." Most of the current problems of the country are caused by poor infrastructure or the lack of it. Education and health care has to be improved and made available to many. All these require good government funding that may be achieved if corruption is completely eradicated.

The country is on the right track, and it should remain that way for years to come. Who would have thought that big name brands such as Rolls-Royce, Lamborghini, Maserati, Lotus, Porsche, Hermes, Louis Vuitton, and the rest would set up shop in the Philippines? They see the market potential for their products, because we have a strong economy. Steve Forbes' has offered good advice. There really is no sense in derailing the current economy, but only improving it further.