January 19, 2018, 5:19 pm
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1 Philippine Peso = 0.07263 UAE Dirham
1 Philippine Peso = 2.14992 Albanian Lek
1 Philippine Peso = 0.03521 Neth Antilles Guilder
1 Philippine Peso = 0.37318 Argentine Peso
1 Philippine Peso = 0.02474 Australian Dollar
1 Philippine Peso = 0.03521 Aruba Florin
1 Philippine Peso = 0.03956 Barbados Dollar
1 Philippine Peso = 1.63687 Bangladesh Taka
1 Philippine Peso = 0.03163 Bulgarian Lev
1 Philippine Peso = 0.00745 Bahraini Dinar
1 Philippine Peso = 34.63172 Burundi Franc
1 Philippine Peso = 0.01978 Bermuda Dollar
1 Philippine Peso = 0.02627 Brunei Dollar
1 Philippine Peso = 0.13568 Bolivian Boliviano
1 Philippine Peso = 0.06382 Brazilian Real
1 Philippine Peso = 0.01978 Bahamian Dollar
1 Philippine Peso = 1.25445 Bhutan Ngultrum
1 Philippine Peso = 0.19324 Botswana Pula
1 Philippine Peso = 395.96518 Belarus Ruble
1 Philippine Peso = 0.03951 Belize Dollar
1 Philippine Peso = 0.02456 Canadian Dollar
1 Philippine Peso = 0.01896 Swiss Franc
1 Philippine Peso = 11.96895 Chilean Peso
1 Philippine Peso = 0.12736 Chinese Yuan
1 Philippine Peso = 56.62579 Colombian Peso
1 Philippine Peso = 11.15506 Costa Rica Colon
1 Philippine Peso = 0.01978 Cuban Peso
1 Philippine Peso = 1.77275 Cape Verde Escudo
1 Philippine Peso = 0.40883 Czech Koruna
1 Philippine Peso = 3.49743 Djibouti Franc
1 Philippine Peso = 0.1197 Danish Krone
1 Philippine Peso = 0.95886 Dominican Peso
1 Philippine Peso = 2.24462 Algerian Dinar
1 Philippine Peso = 0.25141 Estonian Kroon
1 Philippine Peso = 0.34978 Egyptian Pound
1 Philippine Peso = 0.53817 Ethiopian Birr
1 Philippine Peso = 0.01607 Euro
1 Philippine Peso = 0.03956 Fiji Dollar
1 Philippine Peso = 0.01433 Falkland Islands Pound
1 Philippine Peso = 0.01431 British Pound
1 Philippine Peso = 0.08957 Ghanaian Cedi
1 Philippine Peso = 0.9371 Gambian Dalasi
1 Philippine Peso = 177.94699 Guinea Franc
1 Philippine Peso = 0.14509 Guatemala Quetzal
1 Philippine Peso = 4.07219 Guyana Dollar
1 Philippine Peso = 0.15475 Hong Kong Dollar
1 Philippine Peso = 0.46509 Honduras Lempira
1 Philippine Peso = 0.11922 Croatian Kuna
1 Philippine Peso = 1.25771 Haiti Gourde
1 Philippine Peso = 4.9644 Hungarian Forint
1 Philippine Peso = 263.35047 Indonesian Rupiah
1 Philippine Peso = 0.06775 Israeli Shekel
1 Philippine Peso = 1.266 Indian Rupee
1 Philippine Peso = 23.41772 Iraqi Dinar
1 Philippine Peso = 723.08147 Iran Rial
1 Philippine Peso = 2.02255 Iceland Krona
1 Philippine Peso = 2.43928 Jamaican Dollar
1 Philippine Peso = 0.01399 Jordanian Dinar
1 Philippine Peso = 2.18216 Japanese Yen
1 Philippine Peso = 2.03224 Kenyan Shilling
1 Philippine Peso = 1.37189 Kyrgyzstan Som
1 Philippine Peso = 79.26622 Cambodia Riel
1 Philippine Peso = 8.12896 Comoros Franc
1 Philippine Peso = 17.80063 North Korean Won
1 Philippine Peso = 21.02452 Korean Won
1 Philippine Peso = 0.00594 Kuwaiti Dinar
1 Philippine Peso = 0.01622 Cayman Islands Dollar
1 Philippine Peso = 6.47765 Kazakhstan Tenge
1 Philippine Peso = 163.7856 Lao Kip
1 Philippine Peso = 29.88528 Lebanese Pound
1 Philippine Peso = 3.04292 Sri Lanka Rupee
1 Philippine Peso = 2.5093 Liberian Dollar
1 Philippine Peso = 0.24248 Lesotho Loti
1 Philippine Peso = 0.0603 Lithuanian Lita
1 Philippine Peso = 0.01227 Latvian Lat
1 Philippine Peso = 0.02646 Libyan Dinar
1 Philippine Peso = 0.18183 Moroccan Dirham
1 Philippine Peso = 0.33356 Moldovan Leu
1 Philippine Peso = 0.98418 Macedonian Denar
1 Philippine Peso = 26.46361 Myanmar Kyat
1 Philippine Peso = 47.8837 Mongolian Tugrik
1 Philippine Peso = 0.1593 Macau Pataca
1 Philippine Peso = 6.96203 Mauritania Ougulya
1 Philippine Peso = 0.64676 Mauritius Rupee
1 Philippine Peso = 0.30795 Maldives Rufiyaa
1 Philippine Peso = 14.11195 Malawi Kwacha
1 Philippine Peso = 0.37086 Mexican Peso
1 Philippine Peso = 0.07803 Malaysian Ringgit
1 Philippine Peso = 0.24161 Namibian Dollar
1 Philippine Peso = 7.0807 Nigerian Naira
1 Philippine Peso = 0.6072 Nicaragua Cordoba
1 Philippine Peso = 0.15518 Norwegian Krone
1 Philippine Peso = 2.0265 Nepalese Rupee
1 Philippine Peso = 0.02715 New Zealand Dollar
1 Philippine Peso = 0.0076 Omani Rial
1 Philippine Peso = 0.01978 Panama Balboa
1 Philippine Peso = 0.06341 Peruvian Nuevo Sol
1 Philippine Peso = 0.0624 Papua New Guinea Kina
1 Philippine Peso = 1 Philippine Peso
1 Philippine Peso = 2.18473 Pakistani Rupee
1 Philippine Peso = 0.06706 Polish Zloty
1 Philippine Peso = 110.52215 Paraguayan Guarani
1 Philippine Peso = 0.07202 Qatar Rial
1 Philippine Peso = 0.07488 Romanian New Leu
1 Philippine Peso = 1.11739 Russian Rouble
1 Philippine Peso = 16.52987 Rwanda Franc
1 Philippine Peso = 0.07417 Saudi Arabian Riyal
1 Philippine Peso = 0.15387 Solomon Islands Dollar
1 Philippine Peso = 0.26503 Seychelles Rupee
1 Philippine Peso = 0.13841 Sudanese Pound
1 Philippine Peso = 0.15847 Swedish Krona
1 Philippine Peso = 0.02609 Singapore Dollar
1 Philippine Peso = 0.01433 St Helena Pound
1 Philippine Peso = 0.4392 Slovak Koruna
1 Philippine Peso = 150.90981 Sierra Leone Leone
1 Philippine Peso = 10.85839 Somali Shilling
1 Philippine Peso = 393.89636 Sao Tome Dobra
1 Philippine Peso = 0.17306 El Salvador Colon
1 Philippine Peso = 10.18552 Syrian Pound
1 Philippine Peso = 0.24175 Swaziland Lilageni
1 Philippine Peso = 0.63054 Thai Baht
1 Philippine Peso = 0.04769 Tunisian Dinar
1 Philippine Peso = 0.04409 Tongan paʻanga
1 Philippine Peso = 0.07507 Turkish Lira
1 Philippine Peso = 0.13281 Trinidad Tobago Dollar
1 Philippine Peso = 0.5839 Taiwan Dollar
1 Philippine Peso = 44.34335 Tanzanian Shilling
1 Philippine Peso = 0.56547 Ukraine Hryvnia
1 Philippine Peso = 71.79588 Ugandan Shilling
1 Philippine Peso = 0.01978 United States Dollar
1 Philippine Peso = 0.56468 Uruguayan New Peso
1 Philippine Peso = 160.81883 Uzbekistan Sum
1 Philippine Peso = 0.19729 Venezuelan Bolivar
1 Philippine Peso = 449.14952 Vietnam Dong
1 Philippine Peso = 2.0449 Vanuatu Vatu
1 Philippine Peso = 0.04966 Samoa Tala
1 Philippine Peso = 10.5352 CFA Franc (BEAC)
1 Philippine Peso = 0.0534 East Caribbean Dollar
1 Philippine Peso = 10.5352 CFA Franc (BCEAO)
1 Philippine Peso = 1.90645 Pacific Franc
1 Philippine Peso = 4.94363 Yemen Riyal
1 Philippine Peso = 0.24183 South African Rand
1 Philippine Peso = 102.64043 Zambian Kwacha
1 Philippine Peso = 7.15783 Zimbabwe dollar

A tale of two tax tactics

Two distinct economies on both sides of the Pacific that had recently passed historic tax reform bills are opening 2018 in different ways and along starkly different attitudes. While both have been marketed as tax reform measures, each will be received in starkly different manners. One with apprehension and suspicion. The other, with welcome and perhaps even jubilation.

Immediately the impact of both will be felt albeit in varying degrees among each economy’s social classes depending on economic resiliencies as well as on the underlying rationale that the tax reform measures were originally founded against as proposed and advocated by both administrations and each of its distinct ruling parties. One will seem like a curse. The other will immediately accrue benefits to its constituencies.

We’ve only cursorily discussed the salient points of our domestic Tax Reform for Acceleration and Inclusion (TRAIN) bill before and compared it briefly with the tax reform bill authored by the Republican Party (Grand Old Party or GOP) under United States President Donald Trump.

In our neck of the woods, basically the Philippine TRAIN provides minimum wage earners some momentary relief by increasing the width of the tax exemption brackets where those at the minimum levels are granted tax reprieves while those at the higher levels shell out more. 

The other upsides of the TRAIN have to do with processes and the simplification of tax administration. There were some increases in taxes that would benefit society as a whole like those slapped on destructive enterprises such as mining. Other than those, however, the benefits to the greater public end all too quickly. The rest are compromises that pander to vested interests that range from moderate to severe burdens which negate pluses and yield to a tax regime more repressive than what had come before these mislabeled reforms.

For the most part, TRAIN is substantially a series of exponential multiplier taxes that catalyze government’s take.

In contrast, the US law on tax reform lowers business and individual tax rates, streamlines bureaucratic taxation processes and updates US international tax rules, generally and significantly overhauling a 30-year tax code. 

The new law establishes a single corporate tax rate of 21 percent regardless of net income. This repeals former minimum taxes and the current tax rate of 35 percent -- an embarrassing curse which should look familiar to Filipino businessmen as ours hovers at those astronomical levels. Tax rates between 30 percent and 35 percent are among the highest even for large developed economies. Imagine those inflicted on an agricultural economy. 

All told the new US tax rates situate the American tax structure below the European Union’s weighted average thus compelling American offshore businesses to relocate back home.

Of its impacts, the lowering of corporate taxes is especially significant and recent concessions granted by a number of US-based companies to their employees have shown its initial upsides. Already quite a significant number have granted their employees unexpected year-end bonuses, increases in wages and overall increased recruitment in anticipation of expansion. Take home pays are expected to rise further as economic inequity falls, while the significant slide in unemployment statistics is expected to increase within the next months. To validate, simply check the jobs data and the continuing historic highs on Wall Street.

Note that when values rise on Wall Street, corporate dependence on debt and general indebtedness fall thus leading to healthier balance sheets.

Moreover, one of the most significant reforms showing definitive improvement on US domestic jobs and American purchasing power is in the area of overseas taxation for US corporations.

The accounting impact alone is significant and is skewed to benefit American-based corporations. Prior to Trump’s tax reform initiative, American companies outside the US were taxed globally, where taxes due were deferred until earnings were actually repatriated. This loophole allowed those corporations to maintain funds offshore. Rather than benefit the US economy, these benefitted overseas host economies. 

To encourage repatriation, a one-off  “deemed repatriation” levy of 15.5 percent is now imposed on offshore earnings. Not only does this compel companies to remain US-based but this encourages corporations to stay American and hire Americans. Its positive impact on the American jobs market as well as on the welfare of the economy and the labor force is obvious.

On personal income taxes, note the across the board benefits compared to TRAIN’s take-home money impact due to simple re-bracketing or a change in income band width. In the US reform model, most rates actually fall significantly across all but two brackets.

Note the gambit and the radical differences between the American and Philippine tax reform measures. The Philippine model expands the income tax bandwidth specifically for minimum wage earners but imposes exponentially higher taxes on that sector by surrendering to vested business interests and slapping repressive excise taxes on value chain and economic multiplier products that impact negatively on those same minimum wage earners granted temporary if not illusory tax reprieves.

The American GOP model does the fundamental opposite. The lowering of taxes for corporations places the welfare burden on business interests and gives then adequate leeway to hire more and pay more. This generates much needed employment, leads to better wages and creates more equitable environments between labor and business.

The Keynesian differences are fundamental. Ours was driven by politics and vested interest. Theirs,  by public good.
 
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