More taxes ahead

And there it goes. We, Filipino taxpayers, will soon pay for the consequences of the flood control corruption scandal, the populist measures pursued by the Marcos administration and yes, the Middle East crisis.

Ex-finance chief Ralph Recto once promised that there would be no new taxes until the end of Marcos’ term. Recto, of course, had to resort to other means of raising revenue such as a sweep of funds from state agencies as he implemented the appropriations law. Remember the controversial reallocation of PhilHealth and PDIC funds? 

Fast forward to today. His successor, Finance Secretary Frederick Go, now said that there would be eight new and revised tax measures to be introduced. 

He also said the government’s P6.8-trillion budget for 2026 exceeds the projected tax revenues of P4.4 trillion for the year.

One of the measures is a global minimum tax on foreign corporations. The Department of Finance has yet to disclose the complete list.

It is what it is. This is definitely bad news for most of us. After all, who wants to pay more taxes to a system riddled with graft and corruption?

Sec. Go, of course, is only doing his job – to make sure there are enough funds available for programs. 

But it will not be easy for the people to accept this, especially after the unraveling of the systematic looting of state coffers by our lawmakers, in cahoots with government officials.

To put it simply, this is what’s happening – there is so much corruption in government, and efforts to fix it remain wanting, and yet the Marcos administration wants us to pay more taxes. Against this backdrop, additional taxes may be legal but they are unfair and morally wrong.

This is like being asked to pour more water into a bucket full of holes instead of fixing the leaks first. 

But it’s not just corruption that’s hurting state coffers badly. It’s also all those freebies and discounts extended by the government such as the 50 percent fare discounts, the bureaucracy’s expensive and unnecessary spending – from endless trips abroad to the hiring of consultants with fat paychecks to staging expensive gatherings and events. 

To raise revenue, the government can also sell state-owned assets. It can also close some of its offices.

I’m sure these efforts will also unlock billions in savings.

But the most important thing is to really address the grand thievery of taxpayers’ money and get back what was stolen. Theoretically, if the government gets back the estimated P1 trillion that was lost in the flood control scandal, it has already plugged more than half of this year’s projected budget deficit of P1.6 trillion.

Of course, the easy way is always to impose new taxes on a population that is already overburdened with all sorts of duties and fees.

As it is now, every move we make as citizens is taxed – when we eat, travel, ply the roads, buy something, get sick and yes, even after we die.

But it is precisely when the system is flawed that governments like ours resort to the easy way out – tax, tax and more taxes. 

Governments slap taxes not because systems are working but precisely because they are under strain.

Inequality remains

And this is why inequality remains stark in our country today. 

In the Kingdom of France before the French Revolution of 1789, the Ancien Régime was marked by extreme inequality, where the commoners and peasants bore the entire tax burden while the nobility and clergy were largely exempt. 

There were taxes on land and goods, including what was dubbed a notoriously hated tax on salt. Imagine, not only did pre-revolutionary France impose a levy on salt but it also required the people to buy a certain amount of it regularly.

It was this extreme inequality that fueled immense social grievance among the peasants, which in the end led to the historic French Revolution.

Fortunately, this system is not the same as what we have in the Philippines. Even so, inequality remains stark. Who knows how much worse it could get, given the Middle East crisis.

Kung walang kurap...

Speaking of inequality, in August last year, I wrote about two women who are barely surviving.

Teresita Fernandez, in her 70s, has been working all her life as a laundry woman while Editha Carpio, who is in her late 50s, is a retired security guard. 

Both live near the Manggahan Floodway in Pasig.

I told their stories in my column (Kung walang kurap...The STAR, Aug. 10, 2025) and narrated how badly they were struggling to make ends meet. 

They both hoped for a better system where people like them can also thrive and not just survive. 

Listening to them, I remembered the words of the late president Noynoy Aquino – kung walang kurap, walang mahirap. 

After my column was published, readers responded to help them, which they used to pay off loans, unpaid rent and tuition.

Recently, Editha shared the good news that her niece and nephew, whom she has been taking care of, have finished another school year with honors.

Teresita and Editha are very grateful to all my readers who responded to help them. May they – and all those who struggle like them – also get the help they deserve from our government. 

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Email: [email protected]. Follow her on X @eyesgonzales. Column archives at EyesWideOpen on FB.