April 22, 2018, 10:41 pm
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1 Philippine Peso = 0.07053 UAE Dirham
1 Philippine Peso = 1.99923 Albanian Lek
1 Philippine Peso = 0.03418 Neth Antilles Guilder
1 Philippine Peso = 0.38677 Argentine Peso
1 Philippine Peso = 0.02467 Australian Dollar
1 Philippine Peso = 0.03418 Aruba Florin
1 Philippine Peso = 0.03841 Barbados Dollar
1 Philippine Peso = 1.59228 Bangladesh Taka
1 Philippine Peso = 0.03034 Bulgarian Lev
1 Philippine Peso = 0.00724 Bahraini Dinar
1 Philippine Peso = 33.62742 Burundi Franc
1 Philippine Peso = 0.0192 Bermuda Dollar
1 Philippine Peso = 0.02503 Brunei Dollar
1 Philippine Peso = 0.13175 Bolivian Boliviano
1 Philippine Peso = 0.06526 Brazilian Real
1 Philippine Peso = 0.0192 Bahamian Dollar
1 Philippine Peso = 1.26032 Bhutan Ngultrum
1 Philippine Peso = 0.18403 Botswana Pula
1 Philippine Peso = 384.48243 Belarus Ruble
1 Philippine Peso = 0.03837 Belize Dollar
1 Philippine Peso = 0.02421 Canadian Dollar
1 Philippine Peso = 0.01858 Swiss Franc
1 Philippine Peso = 11.41406 Chilean Peso
1 Philippine Peso = 0.12052 Chinese Yuan
1 Philippine Peso = 52.12791 Colombian Peso
1 Philippine Peso = 10.7778 Costa Rica Colon
1 Philippine Peso = 0.0192 Cuban Peso
1 Philippine Peso = 1.71039 Cape Verde Escudo
1 Philippine Peso = 0.39282 Czech Koruna
1 Philippine Peso = 3.39601 Djibouti Franc
1 Philippine Peso = 0.11551 Danish Krone
1 Philippine Peso = 0.94891 Dominican Peso
1 Philippine Peso = 2.1798 Algerian Dinar
1 Philippine Peso = 0.24262 Estonian Kroon
1 Philippine Peso = 0.33916 Egyptian Pound
1 Philippine Peso = 0.52276 Ethiopian Birr
1 Philippine Peso = 0.01551 Euro
1 Philippine Peso = 0.03865 Fiji Dollar
1 Philippine Peso = 0.01348 Falkland Islands Pound
1 Philippine Peso = 0.01349 British Pound
1 Philippine Peso = 0.08525 Ghanaian Cedi
1 Philippine Peso = 0.89975 Gambian Dalasi
1 Philippine Peso = 172.80584 Guinea Franc
1 Philippine Peso = 0.14089 Guatemala Quetzal
1 Philippine Peso = 3.95007 Guyana Dollar
1 Philippine Peso = 0.15072 Hong Kong Dollar
1 Philippine Peso = 0.45249 Honduras Lempira
1 Philippine Peso = 0.11491 Croatian Kuna
1 Philippine Peso = 1.24505 Haiti Gourde
1 Philippine Peso = 4.8093 Hungarian Forint
1 Philippine Peso = 264.60534 Indonesian Rupiah
1 Philippine Peso = 0.06739 Israeli Shekel
1 Philippine Peso = 1.26727 Indian Rupee
1 Philippine Peso = 22.73862 Iraqi Dinar
1 Philippine Peso = 806.60649 Iran Rial
1 Philippine Peso = 1.91031 Iceland Krona
1 Philippine Peso = 2.37565 Jamaican Dollar
1 Philippine Peso = 0.01361 Jordanian Dinar
1 Philippine Peso = 2.06171 Japanese Yen
1 Philippine Peso = 1.92145 Kenyan Shilling
1 Philippine Peso = 1.32194 Kyrgyzstan Som
1 Philippine Peso = 76.97331 Cambodia Riel
1 Philippine Peso = 7.61206 Comoros Franc
1 Philippine Peso = 17.28442 North Korean Won
1 Philippine Peso = 20.40042 Korean Won
1 Philippine Peso = 0.00575 Kuwaiti Dinar
1 Philippine Peso = 0.01575 Cayman Islands Dollar
1 Philippine Peso = 6.25043 Kazakhstan Tenge
1 Philippine Peso = 158.93989 Lao Kip
1 Philippine Peso = 28.9034 Lebanese Pound
1 Philippine Peso = 2.99693 Sri Lanka Rupee
1 Philippine Peso = 2.50451 Liberian Dollar
1 Philippine Peso = 0.22892 Lesotho Loti
1 Philippine Peso = 0.05855 Lithuanian Lita
1 Philippine Peso = 0.01192 Latvian Lat
1 Philippine Peso = 0.02543 Libyan Dinar
1 Philippine Peso = 0.17577 Moroccan Dirham
1 Philippine Peso = 0.31452 Moldovan Leu
1 Philippine Peso = 0.94968 Macedonian Denar
1 Philippine Peso = 25.52333 Myanmar Kyat
1 Philippine Peso = 45.86134 Mongolian Tugrik
1 Philippine Peso = 0.15521 Macau Pataca
1 Philippine Peso = 6.76013 Mauritania Ougulya
1 Philippine Peso = 0.64144 Mauritius Rupee
1 Philippine Peso = 0.29902 Maldives Rufiyaa
1 Philippine Peso = 13.70175 Malawi Kwacha
1 Philippine Peso = 0.35007 Mexican Peso
1 Philippine Peso = 0.07459 Malaysian Ringgit
1 Philippine Peso = 0.22915 Namibian Dollar
1 Philippine Peso = 6.87536 Nigerian Naira
1 Philippine Peso = 0.59554 Nicaragua Cordoba
1 Philippine Peso = 0.14884 Norwegian Krone
1 Philippine Peso = 2.01652 Nepalese Rupee
1 Philippine Peso = 0.02629 New Zealand Dollar
1 Philippine Peso = 0.00739 Omani Rial
1 Philippine Peso = 0.0192 Panama Balboa
1 Philippine Peso = 0.06176 Peruvian Nuevo Sol
1 Philippine Peso = 0.06241 Papua New Guinea Kina
1 Philippine Peso = 1 Philippine Peso
1 Philippine Peso = 2.21836 Pakistani Rupee
1 Philippine Peso = 0.06459 Polish Zloty
1 Philippine Peso = 106.04187 Paraguayan Guarani
1 Philippine Peso = 0.0699 Qatar Rial
1 Philippine Peso = 0.07223 Romanian New Leu
1 Philippine Peso = 1.16816 Russian Rouble
1 Philippine Peso = 16.22066 Rwanda Franc
1 Philippine Peso = 0.07202 Saudi Arabian Riyal
1 Philippine Peso = 0.14768 Solomon Islands Dollar
1 Philippine Peso = 0.25792 Seychelles Rupee
1 Philippine Peso = 0.34667 Sudanese Pound
1 Philippine Peso = 0.161 Swedish Krona
1 Philippine Peso = 0.02513 Singapore Dollar
1 Philippine Peso = 0.01349 St Helena Pound
1 Philippine Peso = 0.42646 Slovak Koruna
1 Philippine Peso = 146.53351 Sierra Leone Leone
1 Philippine Peso = 10.79316 Somali Shilling
1 Philippine Peso = 380.06338 Sao Tome Dobra
1 Philippine Peso = 0.16804 El Salvador Colon
1 Philippine Peso = 9.89015 Syrian Pound
1 Philippine Peso = 0.22917 Swaziland Lilageni
1 Philippine Peso = 0.599 Thai Baht
1 Philippine Peso = 0.04602 Tunisian Dinar
1 Philippine Peso = 0.04292 Tongan paʻanga
1 Philippine Peso = 0.07736 Turkish Lira
1 Philippine Peso = 0.12961 Trinidad Tobago Dollar
1 Philippine Peso = 0.56365 Taiwan Dollar
1 Philippine Peso = 43.7488 Tanzanian Shilling
1 Philippine Peso = 0.50259 Ukraine Hryvnia
1 Philippine Peso = 70.84694 Ugandan Shilling
1 Philippine Peso = 0.0192 United States Dollar
1 Philippine Peso = 0.54158 Uruguayan New Peso
1 Philippine Peso = 154.65719 Uzbekistan Sum
1 Philippine Peso = 1139.831 Venezuelan Bolivar
1 Philippine Peso = 437.43038 Vietnam Dong
1 Philippine Peso = 2.00538 Vanuatu Vatu
1 Philippine Peso = 0.04922 Samoa Tala
1 Philippine Peso = 10.16881 CFA Franc (BEAC)
1 Philippine Peso = 0.05185 East Caribbean Dollar
1 Philippine Peso = 10.16881 CFA Franc (BCEAO)
1 Philippine Peso = 1.83983 Pacific Franc
1 Philippine Peso = 4.79931 Yemen Riyal
1 Philippine Peso = 0.2292 South African Rand
1 Philippine Peso = 99.66391 Zambian Kwacha
1 Philippine Peso = 6.95026 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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