Labor group proposes 'wealth tax' to fund economic stimulus
Labor coalition Nagkaisa! on Thursday unveiled its “Labor Agenda sa Panahon ng Pandemya”, which contains a proposal for a wealth tax to fund economic stimulus, sustain development and address poverty and inequality.
The group said their proposal for a wealth tax is aimed at countering the official narrative about "lack of money" hampering the delivery of aid, as well as the reluctance of economic managers to spend more for stimulus just to protect the country’s high credit rating.
"Our wealth tax proposal once imposed upon obscene private wealth will ensure a steady funding stream of not less than P1 trillion per year. We can do so by just taxing the richest 650,000 individuals by 5%, the richest 160,000 individuals, or those with net worth of P10 million and up, by 7%, and the richest 40 individuals, or those with net worth greater than P10 billion, by 10%,” said Nagkaisa in a statement.
“President Duterte has declared war against the oligarchy. Here is a just and winnable, whole of society struggle against poverty and inequality compared to personal attacks against a select group among the oligarchs,” added the group.
The group said its wealth tax proposal is a step in the right direction as the country needs fresh sources of money to fund recovery and development.
Nagkaisa made the proposal amid the House approval on second reading of the Bayanihan to Recover as One and the official announcement of the economy sinking deeper to a 16.5% contraction in the second quarter.
According to the group, a crisis of this magnitude requires a bigger stimulus and a secured, healthy labor force to prevent an ultimate collapse.
Nakaisa’s Labor Agenda estimates not lower than a trillion-peso stimulus is needed immediately to prevent further collapse of key economic sectors; including micro, small and medium enterprises (MSMEs) which employ majority of our labor force; and to avoid millions of working people regressing back or sinking deeper into extreme poverty.
Also part of the Labor Agenda are proposals for the protection of labor rights during crisis, income and guaranteed employment for workers, support to key sectors of the economy, among others.