I'm Giancarlo Enrico S. Pozon, a Wushu instructor, investor and Barrister... That's right, Barrister; I graduated from law school and took the Bar Exams, now I'm waiting for the results. I created this blog to make Philippine Law easy to understand for the average person. It's all about free legal advice. There are many law blogs. But the problem is that many of them are written for lawyers and law students. They use words that can't be understood by ordinary people.
Many lawyers, judges and law students consider themselves as superior to most human beings because of their knowledge of the law. It bothers me since the law is supposed to serve society. Since the law is meant to serve society as a whole, it is important that is must be understood by everybody.
This does not mean that we should all become lawyers. It means that although law is a highly specialized profession, the first duty of everybody in this profession is to make the law understandable to all; that's why all these articles are free legal advice.
Like I said, this blog is about law -but it's for the ordinary people, not the lawyers. It's for the ordinary folk so they will know what is good and bad for them, and that making them aware of the law will help us all improve society as a whole. This is free legal advice for everybody!
Depending on which country we belong to, the income taxation system will either be Regressive, Proportional, or Progressive.
1.) Regressive
In a regressive system of taxation, not to be confused with a regressive tax, the tax rate decreases as the taxpayer's income increases. While this may sound unjust on paper, it is actually quite good. In a regressive system of taxation, hardworking people are actually rewarded by paying less taxes while lazy people are punished by paying more taxes. If a person works hard, he gets a pay raise, a promotion, or both. In a regressive system, he is also rewarded with a lower tax bracket. The goal of a regressive system is to encourage productivity and economic growth.
2.) Proportional
Here there is only one tax rate, a certain percentage. By paying a single rate of tax, it becomes less bothersome for the taxpayer. Countries that use this system of income taxation keep the rate low. The end result here is that although the tax is low, there are enough taxpayers to pay it. By keeping taxes low, the government encourages productivity and economic growth while keeping the collection of taxes constant.
The above two systems are in place in many countries with strong economies. Now, we come to the third.
3.) Progressive
The idea behind this system is that people with higher incomes should pay more taxes than those with low incomes. Social justice, supposedly, is the aim of this taxation system. In practice, it isn't. In this system when a person's income increases, his tax bracket also increases. The result is that many people living in countries with this system look for ways to defeat the tax system. Contrary to the claims of its proponents the progressive system of taxation has only increased the number of tax evaders and, in some countries, hampers economic growth because less productive people are rewarded with lower tax rates while hardworking ones are penalized with higher tax rates. This is the system followed in the United States and the Philippines.
2 comments:
no wonder we're stuck in this pithole
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