Are Taxes Evil?

by Anthony Alden S. Aguilar

Taxes are the fuel that makes civilizations run. How we tax and spend determines to a large
extent whether we are prosperous or poor, free or enslaved, and most importantly, good or
evil.

!harles Adams, "or #ood or $vil% The &mpact of Taxes on the !ourse of !ivilization

Almost everyone has an opinion on taxes. For most part, those who have jobs will call
taxes pabigat (burden), a nuisance, or even evil. Well, who could blame them? Everyone
wants to see somethin, some !ind o" bi chane or a tanible proo" that their taxes are
wor!in "or them. Apparently, the sins that declare #$our taxes are wor!in "or you# oes
inored, especially i" one#s taxes cause tra""ic problems "or a year, than!s to a new road
rebuildin project. %t seems that considerin a lot o" thins, tax comes o"" as both a major and
a minor inconvenience that we have to handle.

&oes tax even have a tric!le'down e""ect on those who need it most? Where is the
proress and development we have all been waitin "or all these years? %t seems li!e our
taxes are just a cause o" misery, more than proress. %n "act, when have you ever heard an
everyday wor!er praise taxes or say that it is somethin that brins more harm than ood?

(axation is one o" the most notorious powers o" a overnin body. %t has been viewed
as an oppression o" sorts, especially by those who are strulin to ma!e ends meet or those
who are just violently opposed to the idea o" havin a tax system. )istorically, taxes have
caused all sorts o" controversies, revolts, and protests. Even *esus was not spared "rom tax+ he
was even ,uestioned whether he "ound it necessary or not.

(axation has always been present in overnments and civili-ations, whether hue or
tiny. (axes were oriinally a communal "und that is intended to be spent on persons or items
that would help de"end the town or villae aainst invaders. (axes were also oriinally meant
to help support the royals or the state o""icials. (he plebians or those who belon to the lower
class were the ones who paid taxes or levies that have been imposed upon them.

Ancient .ayans imposed tax laws that made some members o" communities to exile
themselves in the junle in order to escape payin their dues. /ote that taxes at this time were
not monetary, but rather were in the "orm o" oods or services. (here"ore, "armers with low
crop yields have to harvest "or business as well as "or payment to their villae o""icials, which
is ,uite a burden. Ancient 0ome has several tax laws that have caused unrest in the populace.
With its systematic cateori-ation o" tax laws and levies, the 0oman empire has been built on
war and taxes. (he empire#s taxes were initally collected "rom those who lived in 0ome, but
than!s to con,uest, the tax burden was trans"erred to the provinces 0ome con,uered. %t is this
issue, in "act, that *esus was as!ed. %n the 11th century, a woman pleaded to her husband to
remove a burdensome tax called the )ereeld "rom the dues o" those who lived in 2oventry.
3ady 4odiva, it was said, barained with her husband, the Earl o" .ercia that i" she rode
throuh the town na!ed, he would lower the levies he has imposed upon those he overned.
5ince his wi"e rode throuh town with only her lon olden hair coverin her body, the earl
removed the oppressive tax. (here are several other historical situations where taxes caused a
"uror, indination, aner, and a strane event li!e that in .ercia. Ancient civili-ations have
been the "irst to "eel the 6burden6 taxes carried and they are certainly not the last. 7nless
overnments "ind another way to create income and bul! up their co""ers, taxes are here to
stay.

What is taxation exactly? &oes it really have a purpose?

(axes are imposed upon an individual, a business, a property by a state or an e,uivalent o"
one. (axes are inescapable+ "rom the oods you buy to the money you earn, taxes are almost
always included in everythin you do. (here are several !inds o" taxes that could be bro!en
down in two cateories+ direct and indirect !inds o" taxes. (he direct !ind o" taxes are the
ones that you are oblied to pay monthly li!e income tax. 8n the other hand, taxes that are
imposed indirectly are the ones that you only pay when you purchase speci"ic oods or
services.

(axes are the li"eblood o" a state. Everythin "rom in"rastructures to boo!s in public schools
are covered by what very Filipino citi-en pays as tax. (ax rates and payments are adjusted
accordin to one#s capacity to pay and the amount o" his or her income. (his way, every
person has, in theory, an e,ual and "air contribution. (axes help "und several overnment
projects that are aimed towards improvement o" social conditions. (he overnment#s justice
system, police power, and social "unctions all lean heavily on the taxes that Filipinos pay,
whether direct or indirect. With what they ather every year, the overnment allocates a
budet "or di""erent sectors. (axes o to buildin roads, the education system, wel"are, and
subsidies amon others. (he "unds "rom taxes provide the social projects and services to
citi-ens o" a state or members o" a roup where the taxes are imposed.

4 Rs of Taxation

(axation#s purpose and e""ects could be summari-ed by "our 0#s+ revenue, redistribution,
repricin, and representation, with the "irst cateory bein the main purpose o" havin taxes.
0evenue is the most popularly !nown "unction o" taxes, and most li!ely, the most
controversial part o" it, than!s to alleations o" bad allocation and corruption. %n theory,
however, a ood tax system is one that aims to provide social services and bene"its to
taxpayers, instead o" bene"itin the poc!ets o" those who are supposed to be loo!in out "or
the public#s ood and interests.

(heoretically, the taxation system in the 9hilippines ma!es those who have more money pay
more taxes while those who are not so well o"" have smaller income taxes to pay. (his way,
tax becomes an e,ual burden to everyone, reardless o" social status or income brac!et.
(axes aim to redistribute wealth, i" not bene"its the rich enjoy, to those who are
disen"ranchised. %t is this oal that taxes are used to "inance social projects that would bene"it
those who are not well o"", which comprise the majority in the 9hilippines. With a lare
public sector, it is very important "or the overnment, throuh the :ureau o" %nternal
0evenue, to collect tax revenues in order to "unnel them into social projects as well as debt
payment. (his also means that we need a overnin entity that !nows how to allocate budet
and spendin to projects and e""orts that will promote development and economic stability.

(he Asian Economic 2risis did not spare the 9hilippines as local economy struled
alonside its neihbors. (houh almost economy in 5outheast Asia plummeted, the
9hilippine economy showed some resilience as it manaed to strule and stay a"loat while
residents tried to ma!e ends meet as prices soared and dollar rates ballooned to almost double
the reular amount. .anila was hit so hard that the 2entral :an! o" the 9hilippines needed to
be resurrected as the 'angko Sentral ng (ilipinas in order to protect the peso and the local
economy "rom oin to a downward spiral the way :an!o!#s and *a!arta#s did.

(he recent world economic crisis has, aain, tested the 9hilippine economy. (he overnment
has increased budet spendin in order to help stimulate micro'economies into thrivin in
spite o" the recession that is happenin worldwide. (he administration has started labor'
intensive projects that hihliht small in"rastructures, a move that has a two'proned
objective+ to !ic! start small economies and to help increase tax revenue. (he recent projects
have also seen roads built, irriation systems improved, and community initiatives supported.
)owever, has this been enouh to see rowth and development in these areas? 2learly, tax
revenues have been used in such projects but has the nation even "elt a sliht improvement?

(here are still complaints "rom "armers who su""er "rom low yields and the crush brouht
about by imported rice. (here are still schools that complain about a rowin number o"
students every year but a dwindlin amount o" ,uality educational materials and resources.
And there are those who still point to what happened durin 8ndoy+ a traedy that could have
been prevented i" local overnment units had enouh resources to rescue civilians as well as
"und overnment projects that would have created better ways o" handlin a stron typhoon.
And thus, the situation has beed the ,uestion+ are tax revenues so low that it has
incapacitated local overnments "rom doin their jobs? 4ettin the answer to this ,uery may
be a bit tric!y.

(he 9hilippines# budet de"icit is at a tippin point, so to spea!. (he country has borrowed
heavily "rom local and international bodies in order to "inance its projects as well as pay o""
previous debts that are years old. 3ocal borrowin has reached 9;,<== :illion while
international borrowin is slihtly lower at 9=;>.? billion. With this, "actor in a decrease in
tax collection revenues and you have trouble brewin.

/ot only has the de"icit been caused by debt and debt payment, laws have also caused tax
revenues to drop. (he recent chanes in income tax brac!ets as well as laws that ive
companies tax bene"its may have iven individuals more room to breathe but they have,
ironically, created problems "or the national budet. %ncome taxes have dropped than!s to
these new laws. (ax exemptions and cuts are a double'eded sword. 8ne on hand, your
salary has a sliht increase, the bier picture in terms o" overnment budet su""ers a blow.
(his year, the overnment tareted a 911<.@: de"icit "or *anuary to .arch this year, callin
,uarter one#s rates Amanaeable6. )owever, considerin the budet de"icit and the
outstandin debt, the 9hilippine budet may be de"icit'"ree by =<1;. /ote, thouh, that this is
with a bi maybe.

(he 9hilippines is in a strane situation. %t has one o" the hihest taxes in the 5outheast Asia
and yet, it also has the hihest spendin in terms o" debt. 8n the averae, our neihbors
spend ;<B "or their debts while we spend ?CB.

&o we see or even "eel the bene"its o" the "ruits o" taxes or debts? (he construction o" a new
30( line and several other roads and in"rastructures may arue that our taxes are doin wor!
"or us, but then aain, the projects have been done in partnership with "orein entities, which
"ails to ,uali"y it as a local project. 5ure, you see roads paved or built or street lamps erected,
but is this all what we are supposed to et "rom our taxes? Are we ettin a limited !ind o"
bene"it, than!s to our debts and de"icits?

2urrently, the thins that we !now o" tax bene"its are newly constructed hihways aimed at
lihtenin tra""ic, railway systems intended to ease up cloed hihways, state pension, and
even rescue operations when calamity stri!es. (he intent is ood, admittedly, but the
execution o" these services leaves a lot o" room "or ,uestionin and analysis+ does the status
,uo provide enouh budet allocation "or the di""erent sectors o" society? Are we ettin as
much as we should "rom our taxes?

8n the other side o" the world, 5candinavian countries pay massive amounts o" taxes. (he
countries in /orthern Europe are amon those who pay the hihest taxes in the world with
&enmar! havin C1B and 5weden with ?@B. With these lare rates, one would expect a
discontented i" not slihtly ir!ed populace. A"ter all, with a ta!e home o" barely D<B o" your
income, why would you be happy? 8n the contrary, the 5candinavians do not really have a
stron resistance when it comes to payin taxes. Why? :ecause they have an e""ective system
that ta!es care o" them and loo!s a"ter their needs. )ih income tax rates "inance a hue
public sector in these countries, too. )owever, unli!e the 9hilippines, these countries enjoy
"ree ,uality education, health care, and social security that provides monthly stipends to
seniors and to the unemployed. (hey enjoy ood social services, than!s to their overnments#
budet allocation and de"icit manaement.

%t has been said that a state#s tax system re"lects the values o" its communities and o" those
who are in power. (a!in this to the local settin, it seems that we have no clear idea o" what
we want to happen and where we want to o. 5ure, there may be a small tric!le down o" the
bene"its o" taxation, but with politicians bein accused o" corruption and poc!etin honest
taxpayers# money, what hope do we have o" establishin a oal that would uni"y us as a
nation? Are we a nation that aims to arm the youth with ,uality education or are we one that
"ocuses on industriali-ation and development? %ndeed, with almost every sector sayin that
the budet allocation they et "rom the overnment isn#t enouh, it loo!s li!e we are just
oin nowhere in terms o" allocatin and spendin the money we et "rom taxes.

Are taxes really necessary or are we just providin "unds "or a vicious cycle o" corruption? %"
somethin is so evil that it needs to be removed, would our lives be better o"" without a
taxation system?

(here are several theories and objections that are aainst taxation. .ainly, these theories say
that taxation is essentially wide scale the"t done by redistributin income. While there are
those who may propose alternative means to providin income to the state or to "und social
projects, there are still those who arue that taxation is a system that wor!s "or the collective
ood, in spite o" its pit"alls and susceptibility to corruption. A lot o" political philosophers say
that taxes may wor! "or a state, as lon as the taxes "und activities that ive bene"its to
citi-ens. With bene"its that come with an e""icient and wor!in tax system, it could be arued
that it is necessary since it is, a"ter all, the li"eblood o" a "unctionin state.

(ax is not purely evil, it is a necessary one. %n the "irst place, how do we de"ine #evil#? %n this
situation, % uess evil could be de"ined as somethin that does more harm than ood. %" we
tal! about taxes, does implementin a taxation system yield bad social conditions and dire
economic situations?

(axes are not desined to be evil mechanisms o" a state or overnment. %n "act, they have
been re"ormatted and tailored in such a way that the revenues are "unneled towards projects
that are "or the eneral ood and mostly "or the bene"it o" the disen"ranchised. (he intent o"
atherin tax revenues is to "und projects and services that would help improve the lives o"
the eneral public, which is "ar "rom bein an evil thin. )owever, the problem starts when
allocation and budet are brouht up, especially since taxes are alleedly bein poc!eted as
much as they are bein spent. As was already mentioned, a state is de"ined by the oals o" its
budet allocation. What does ours say as a nation? What do Filipinos aspire and hold dear?
For now, the answer may be "reedom "rom debt coupled with the desire to be a competitor in
emerin mar!ets in the reion. 8ur taxes help support the economy and the overnment#s
recent e""ort to stimulate the 9hilippine mar!et. (he Arroyo administration spent 9=@< billion
to alvani-e the economy in order to !eep it "rom collapse.

(rue, the tax system may come with burdens and rules, but Filipinos stand to ain more i"
there was proper budet allocation as well as clean and honest o""icials who really put these
"unds into ood use. (axation is a necessary evil+ it still manaes to provide "or Filipinos,
even i" the ,uantity and sometimes ,uality o" service is o" ,uestion. We do et a little bit o"
somethin "or our taxes but should it stay that way? 5ince we have one o" the hihest taxes
this side o" Asia, isn#t it about time that we et more "or what we literally pay "or? (his issue
is one o" the major ones that presidential candidates need to "ocus on and discuss in their
plat"orms since it would re"lect his or her aenda "or the country.

Aside from the question of what a candidate could do for his or her country, perhaps we
also need to ask: what will you do with our taxes? Would you mandate and create more
laws that would help lower taxes and would you et more aressive in revenue collection?
Would you "ocus more on education or would you "ocus on economic policies and prorams,
and brin the budet towards those oals? Would you prioriti-e ariculture or
industriali-ation? 5uch essential ,uestions are tied to the concept taxes and budet allocation
that the would'be president has to hihliht i" not discuss. 8ther than concerns on how the
next president would help improve social conditions and ,uality o" li"e in our country, we
also need to as!+ what will you do with our money? A"ter all, we are providin the "unds "or
his or her administration so we have the riht to as! "or transparency when it comes to these
matters.

%t ta!es an evil o""icial to tarnish the idea o" taxation. Eili"ied as it may be, taxes are
necessary in providin "or citi-ens. We want more "rom our taxes, yes and we want to "eel the
bene"its on a more wide'scale perspective. We want more projects that promote development
and proress. With all these hopes, dreams, and oals, we need a president who would ma!e
taxes wor! "or us instead o" ma!in it into some entity that we have started to become wary
o" and sort o" despise. We need a leader who !nows how to wor! "or us and help ma!e taxes
a small price to pay "or an improved country.


)The article reflects the personal opinion of the author and does not reflect the official stand of the
*anagement Association of the (hilippines. The author is Tax (artner of $ndriga, *anangu +
Associates, !(A,s and *anagement !onsultants. "eedback at map-globelines.com.ph. "or
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