This can certainly be seen in the case of many industrialized nations. For instance, look at the
If income inequality is the root of the problem, then government has the power to fix it through a progressive income tax rather than the regressive consumption tax known as the VAT. It is unconscionable that the Philippine government tax the poor at the same rate as the rich.
How is this possible you ask?
Let’s say there is 1 peso a tax on sardines. Since the poor would essentially consume the same number of cans of sardines as the rich (theoretically), then the same tax rate of 1 peso per can of sardines would apply to both of them. Proportionately, the 1 peso tax would hurt the poor man more since…well…he’s poor.
Then why oh why is GMA proclaiming that the RP will be a first world nation within a generation? It’s an estimate that is premature and certainly unrealistic given the current situation. The GDP did grow 7 percent, yet most of the gains were garnered by the rich and the poor felt little. Trickle down economics has not worked. A lot of work needs to be done before anyone can proclaim the
It’s time for a revolution. The patchwork solutions of former administrations have not worked. Wake up and smell the stench from the