Smith's Ideal Tax System
Name of the law that was passed in 2024 that is related to "Convenience"
Ease of Paying Taxes Act
When consumer demand is price elastic, how would you categorize corporate taxes, ceteris paribus according to incidence?
Direct
Give 2-3 examples of VAT exemptions BEFORE TRAIN was passed
Girl Scouts, Boy Scouts, Cooperatives, Medicines, Books, Seniors, PWDs
Give one example of VAT exemptions that was ADDED after TRAIN was passed
Condominium Association Dues
What is the impact of the reduction in Personal Income Tax on the poor?
Nothing
If you suddenly face hidden charges in paying taxes, what ideal tax system characteristic according to Smith is violated?
Certainty
When labor supply is wage inelastic, how would you categorize corporate taxes, ceteris paribus according to incidence?
Indirect
What is the argument to support the removal of VAT exemption from specific groups like senior citizens and PWDs?
Not all of them are poor. We are subsidizing the rich.
What is the main reason of Duterte why he wanted to push for a Tax Reform?
Finance Build, Build, Build
How can we consider that the Fuel Excise Tax is progressive?
This concept explains the reason why taxes should have Equity
Birth Lottery
Categorize VAT according to THE AMOUNT PAID
Ad Valorem
Explain the Unconditional Cash Transfer and why was it included in TRAIN
To remove the negative impact of fuel taxes on the poor
Who was the DOF secretary who pushed for TRAIN?
Carlo Dominguez
How does TRAIN fulfill the DE category of Scale?
It's a national law
What is unique about the government compared to the private sector discussed in our lecture?
It's the only institution allowed to compel people to pay taxes.
Categorize Sin Tax according to the SCOPE
Special
Why is automobile considered an "excise" tax?
It addressed the externalities of pollution and traffic congestion
What was the exemption included in the automobile excise tax due to corporate lobbyists?
pickups
How did Karl Chua apply the DE principle of expecting and exploiting surprises/opportunities?
TRAIN was just for funding BBB. But, he saw it as an opportunity to fix the broken tax system.
If the cost of obtaining information about people's income is high, what ideal tax system characteristic is violated?
Economy
When can the personal income tax become regressive in practice?
When rich people do not declare their true income
What is Pantawid Pasada? Why was it included in TRAIN?
Voucher for jeepney drivers who are affected by the fuel tax
What was the main source of additional funding in TRAIN to finance Build, Build, Build due to the rampant lobbying that occurred in its many components? This was not part of the original proposal.
Sugar Sweetened Beverages Excise Tax
Cite one instance where political feasibility is not aligned with the technical soundness of proposals within TRAIN
VAT exemption of coops with more than 10m value; Automobile Tax; senior citizens; etc.