Research group IBON said\nthe Department of Finance\u2019s (DOF) claim of over a million jobs to be created by\ncorporate income tax cuts under the proposed Corporate Income Tax and Incentives Rationalization\nAct (CITIRA) is\nimaginary. The group said that the DOF is hyping job creation to justify\nimplementation of regressive tax measures. CITIRA will increase corporate profits and executive pay without\nincreasing jobs nor even wages, IBON said.<\/p>\n\n\n\n
The group recalled that\nthe DOF repeatedly claimed that the Tax Reform for Acceleration and Inclusion\n(TRAIN) law would benefit \u201c99%\u201d of Filipinos or households when they were\nlobbying for this. The DOF did so despite knowing, on the contrary, that the\npoorest 17.2 million Filipino families would eventually be burdened by\nadditional consumption taxes especially after the smokescreen of temporary cash\ntransfers, said IBON.<\/p>\n\n\n\n
\u201cThe DOF is now claiming\nthat CITIRA \u2018will benefit more than 99% of companies\u2019 and that the proposed\ncorporate income tax (CIT) cuts will create 1.5 million jobs. There is no\nlegitimate basis for such a claim,\u201d said IBON executive director Sonny Africa.\n\u201cThe DOF seeks to justify even more tax cuts for the rich following TRAIN\u2019s\nreduction of personal income taxes (PIT).\u201d<\/p>\n\n\n\n
\u201cThe\nDOF\u2019s suddenly claiming that CITIRA will create jobs is suspicious,\u201d Africa\nsaid. He noted that there were no job generation estimates when the bill was\nfirst submitted to Congress in early 2018 as TRAIN Package 2, when it was\npassed by the House of Representatives (HOR) in September 2018 as the renamed Tax\nReform for Attracting Better and High-Quality Opportunities (TRABAHO) bill, nor\neven at the first Senate hearing on it right after.<\/p>\n\n\n\n
Africa recalled that DOF\nundersecretary Karl Chua said outright at the Senate hearing: “We do not\nsee a job impact.” Department of Labor and\nEmployment (DOLE) director Dominique Tutay on the other hand answered\npointedly: “Mayroon po <\/em>[mawawalan ng trabaho<\/em>].” Africa said\nthat it was only on October 17, 2018, that the DOF suddenly declared in a press\nrelease that the proposed law would create 1.4 million jobs.<\/p>\n\n\n\n He added: \u201cThe DOF\u2019s job generation claim is\nunfounded speculation that has no theoretical or\nempirical basis.\u201d \u201cThe new jobs will\nsupposedly come from businesses \u2018reasonably\u2019 spending half of their increased\nprofits from the lower corporate income tax \u2018in growing their businesses\u2019 but companies\nalready have enough profits as it is,\u201d Africa said. <\/p>\n\n\n\n He cited DOF reports that large firms account for some three-fourths\n(75%) of corporate income tax collections. Africa pointed out that the profits\nof the country’s Top 1000 biggest corporations have been growing some 12%\nannually in the past decade, and have more than tripled from Php415 billion in\n2008 to Php1.33 trillion in 2017.<\/p>\n\n\n\n \u201cSimplistically claiming\nthat corporate tax cuts will magically create 1.5 million jobs is deceitful as\nthe argument opportunistically ignores key economic realities,\u201d said Africa. He\npointed out that global growth is slowing, trade is weakening, foreign\ninvestment flows are falling, and protectionism is growing, while Philippine\neconomic growth has already slowed to its lowest in 17 quarters.<\/p>\n\n\n\n \u201cIt is more likely that\nCITIRA\u2019s tax cuts will just go to increasing corporate profits and justify\nincreasing already exorbitantly high executive pay. They will certainly not go\nto increasing wages because corporations have kept real wages flat for over a\ndecade-and-a-half despite rising labor productivity,\u201d concluded Africa.<\/p>\n","protected":false},"excerpt":{"rendered":" Research group IBON said the Department of Finance\u2019s (DOF) claim of over a million jobs to be created by corporate income tax cuts under the proposed Corporate Income Tax and Incentives Rationalization Act (CITIRA) is imaginary. The group said that the DOF is hyping job creation to justify implementation of regressive tax measures. CITIRA will […]<\/p>\n","protected":false},"author":3,"featured_media":8603,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":"","_expiration-date-status":"saved","_expiration-date":0,"_expiration-date-type":"","_expiration-date-categories":[],"_expiration-date-options":[]},"categories":[2048,14],"tags":[2078,530,2079,347,116,2047,522,521,1077,1445],"acf":[],"_links":{"self":[{"href":"https:\/\/www.ibon.org\/tl\/wp-json\/wp\/v2\/posts\/8602"}],"collection":[{"href":"https:\/\/www.ibon.org\/tl\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ibon.org\/tl\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ibon.org\/tl\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ibon.org\/tl\/wp-json\/wp\/v2\/comments?post=8602"}],"version-history":[{"count":1,"href":"https:\/\/www.ibon.org\/tl\/wp-json\/wp\/v2\/posts\/8602\/revisions"}],"predecessor-version":[{"id":8604,"href":"https:\/\/www.ibon.org\/tl\/wp-json\/wp\/v2\/posts\/8602\/revisions\/8604"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.ibon.org\/tl\/wp-json\/wp\/v2\/media\/8603"}],"wp:attachment":[{"href":"https:\/\/www.ibon.org\/tl\/wp-json\/wp\/v2\/media?parent=8602"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ibon.org\/tl\/wp-json\/wp\/v2\/categories?post=8602"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ibon.org\/tl\/wp-json\/wp\/v2\/tags?post=8602"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}