Wednesday, January 23, 2019

Danilo Suarez: Government should only spend what it earns

Jun 13, 2018 @ 13:42

Quezon 3rd District Representative Danilo Suarez, in his Manila Standard column, said the government should only spend what it earns.

The Quezon politiko made the statement amid the rising prices of commodities.

Suarez said even before the passage of the TRAIN law, he insisted on a revenue-neutral position.

“I have been vocal about my stand on TRAIN even before its passage. I insisted on my revenue-neutral position. Simply, the government should only spend what it would earn,” he said.

Suarez said the rising prices of commodities has canceled out the increase in take-home pay of taxpayers.

“The rationale behind a revenue neutral tax reform scheme is that we need to strike a balance between our spending and revenue generation through taxation. As we increase excise taxes, the tendency is that prices of basic commodities also increase, wherein the cost is being passed on to the consumers. In effect, this cancels out the increase in the take-home pay of the taxpayers,” he explained.

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