MANILA, Philippines — Taxes are the income of the government and they are the willing contribution of the members of the community for common needs like roads, ports, safety, and other services rendered by the government.

The bromide is that there is certainty only in death and taxes. But the connotation of this is that taxes are given unwillingly by the members of the community. Ideally taxes are willing offerings of the citizens for services which they need.

But it is always hard to part with hard-earned money, especially if you do not see where it is spent. But in any large organization like a country, you would not be able to trace where your contribution goes and yet you must just take it on faith that your contribution is necessary for your welfare and that of your family.

In a small community or when starting a new nation, it might be possible to see the connection of your contribution and the need for it. This is one leap of faith that we have to make for the common good.

But as the years go by, the proper distribution of this obligation gets left behind by events. Taxes are called progressive if those who can better carry them are made to pay.

They are regressive if the weak as well as the strong pay the same taxes so that proportionately the weaker or poorer citizens pay more as a percentage of their income than the rich.

Sales taxes and VAT taxes are regressive taxes because everybody pays the same amount whether you earn only a pittance or earn in millions. Income taxes are progressive taxes in that those who earn more pay more taxes.

Personal income taxes in times of emergency as in World War II in the USA incomes were taxed up to 95%. Because of the emergency, citizens were willing to pay for the war effort.

Right now our taxes are reasonable but corporate income tax could possibly be increased from the 35% imposed to 40% or even 45% without imposing undue burden on corporations. Our country has one of the lowest tax rates among our neighbors.

Many of our rich citizens have used corporate organizations to reduce their tax rates. This is legitimate but because we have a great need for government income to provide common facilities like schools and hospitals, corporate income taxes can easily be increased. This is something our legislators should do.

Sin taxes on items like tobacco and alcohol have been left behind by events. Specific tax on a cigarette has been the same amount when a cigarette cost ten centavos or when it has now risen to one peso a cigarette. This is the discussion of whether cigarettes that cause illness should be taxed according to its value in pesos rather than a specific amount for each cigarette. Commissioner Henares is targeting a potential good source in the taxes for professionals such as actors, lawyers, doctors, and accountants. Heritage taxes can also be updated. The complaint is that mines hardly pay for the minerals they recover from our mountains because of outdated systems of paying for the savings of nature. I am all for the development of mines and mining but it should pay reasonable taxes. At present in the system of calculation of taxes, mining taxes are minimal. One way of solving this problem it is to impose a tax on gross income rather than on net income. A one or two percent tax on gross income will guarantee the government income from exploitation of natural resources instead of the net income tax which is subject to different calculations. <emeterio_barcelon@yahoo.com>