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| photo grabbed from the UP School of Economics website |
Foundation for Economic Freedom (FEF) Chairman and former National Economic and Development Authority Secretary Dr. Felipe Medalla will give a lecture entitled "Financing the Aquino Administration’s Fiscal Program: Better Tax Administration and New Taxes?" at the 4th Annual BSP-UP Professorial Chair Lectures at the Assembly Hall of the Bangko Central ng Pilipinas from 9am-10am on February 22, 2011.
The lecture will serve as a reality check to President "Noynoy" Aquino's promise to improve infrastructure and social services without imposing new taxes.
In the lecture's abstract, Dr. Medalla explains that "while it is important to improve tax administration, it may not be enough".
"The tax system has been eroded by (a) the effects of inflation on excise taxes, which have not been adequately adjusted for inflation; (b) reductions in tariffs due to our free trade agreements and trade liberalization policies; (c) negative effects of global crises on corporate profits; and (d) new revenue–losing laws. The effects of (a) to (d) are so large that the improvements in tax administration cannot restore the revenue loss, even under the most optimistic scenarios. It may be necessary to increase excise taxes and rationalize fiscal incentives."
Will these policies contravene free market principles? "Like" The Foundation for Economic Freedom, Inc. today and follow the discussion on this topic!
I was there yesterday and I asked Dr. Medalla several questions, among which is that "more taxes" is a wrong prescription. Reminding the government to live within its means, don't overspend, is a better alternative.
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