PNoy's no tax cut stance

For hosting APEC the government is expected to spend something like 10 billion pesos, according to Malacañang. But some finance expects estimate the expense to be three times that amount or 30 billion pesos, the same amount which the government is said to lose once the proposed income tax reduction is approved. This is the reason why President Aquino has reportedly stood pat in his objection to the proposal despite the attempt of Senate President Drilon and Speaker Belmonte to soften his stand on the issue.

What could be PNoy's other reasons for stone–walling the move to lighten the tax burden of the average Filipino? At a time when the 2016 election is only seven months away the president is surely aware of the adverse effect of his position on Mar Roxas' candidacy which he has strongly endorsed. But perhaps he must have calculated that since the planned tax cut would benefit only the middle income salary earners, who are not as numerous as the rank and file workers who are already exempted from paying taxes, such effect would be negligible. Perhaps too he must have believed that his yellow brigades are so fixated on continuing his daang matuwid mantra that tax cut or not they would still support his candidates.

Thirty billion pesos–if PNoy's government was willing to part with this money for a few days of APEC euphoria, could it not spare the same amount to make life a little better for the average worker? One congressman pointed out during the latest budget hearing that no less than 400 billion pesos in the 2015 expenditure program was still untouched. And in fact in the 2016 budget there is P30 billion set aside as beef-up funds for a government bank and a semi-government one. Is helping these banks a higher priority than  helping salaried workers already burdened by high taxes and high cost of living?

Malcañang further says that in addition to loss of revenue another negative effect is the possible downgrading of the country's financial profile by international rating agencies. On this some opinion writers have asked.  Is good financial image more important than alleviating the plight of our taxpayers?

These things considered, PNoy's objection towards lower taxes is therefore neither politically nor economically reasonable. No doubt he and his advisers have seen this but why the unyielding stance? Does he not care if his anointed candidate would get smothered at the polls? Is he not worried that if either Binay or Poe would win nobody would protect him from the avalanche of cases against him?

Perhaps, at the back of PNoy's mind is the belief that neither Binay nor Poe would be after his neck once he vacates Malcañang. And such belief is not farfetched. Binay–if  it would be he–is never an Aquino nemesis. Remember how he bravely stood side by side with Cory even in the face of seven coup de etat? Remember how the Aquino sisters declare their partiality to him as a presidential timber? And remember NOYBI? Don't you suspect that the operation had tacit approval by PNoy himself? Binay may have been crucified by charges of corruption but despite these his congenital loyalty to the Aquinos remains. So Binay would be a harmless chief executive.

As for Poe–if she makes it despite the disqualification cases–this woman is actually a soft-hearted Aquino advocate. First she won her Senate seat in the Aquino line up. Second, she has been supportive of PNoy's presidency, that's why in the Corona trial she had been a gentle lamb following the Aquino veterans. That's why too early on PNoy practically begged her to be Mar's vice presidential partner. Would he have done this if he was not sure that Poe has a yellow streak in her heart?

So Poe, like Binay, would be a harmless chief executive. Therefore, there should be no tax cut-and what is there to fear?

[email protected]