Tag Archive | Income Tax Reform

Tension headache and my coffee mug

I am looking at my coffee mug filled half-way through with a concoction of black coffee and butter from grass-fed cows of New Zealand. Is the mug half-empty? Is the mug half-full? I wonder.

Seven months ago I didn’t care about how the government taxed us. I always believed that what belongs to the government is not my own. Therefore, I didn’t care much about how much tax is slashed off from my income. I didn’t even bother to know how tax is being calculated or when tax is going to be filed. After all, someone always had to file my ITR for me. I take home what was left of my pay minus the government required taxes already.

It’s almost 2 weeks now since the reality of the Philippine taxation has sunk in on me. 32% tax slashed off from my income is no fun at all. Just 2 weeks ago, it dawned on me that I need to cut a good portion of my income to pay for my ITR. It has given me headache, stress, and tiny droplets of tears that voluntarily form on my tear ducts.

Surge of thoughts and non-thoughts just keep on sweeping my head causing it to ache even more. A friend told me that I don’t need to declare my income so that I don’t need to pay my income tax. Sounds like a good plan, eh, but no. It’s plain corruption and I won’t do that.

The amount of income tax I need to pay is not inconsiderable. At least for a regular working class person like me where every peso keeps us going, any amount is worth saving. It was a huge lesson for me to understand what I was getting into before making any financial plans and spending.

Perhaps it was intended for me to learn this before April 2016. I still have a good 7 months to cut my spending and save money to pay for my income tax. I still have a good 7 months to plan, strategize, and take action on how I can earn more so that I can still live a little comfortably while paying my 32% income tax. Perhaps it was intended for me to learn more about  Philippine taxation from my accountant friend who is very much helpful in educating me on this.  Perhaps it was intended for me to be more motivated to branch out into setting up my own business.

senator sonny

Senator Sonny Angara meme I found in FB. Credits to the one who created it.

2016 is coming. We are about ready to choose our new set of government officials. Perhaps it’s now time to become a registered voter again and vote for lawmakers who considers increasing our take home pays. Perhaps it’s now time to consider voting for lawmakers like Senator Sonny Angara.

Perhaps its time to make a proactive change.

Perhaps my mug is not half-empty.

Perhaps my mug is half-full.