Trump says his tax bill is 'moving along.' Except it doesn't exist

It lowers the personal income tax of regular wage earners from 32 percent to 25 percent, but raises excise tax on fuel, new cars, and sugary drinks.

In a letter submitted to Senate President Koko Pimentel and House Speaker Pantaleon Alvarez, Duterte noted that the tax reform is necessary to "achieve a simpler, more equitable and more efficient tax system".

One of the top priorities of President Donald Trump and Republicans in Congress is to ease the tax burden on American companies.

The first wave of ads will target 18 House members, including Ways and Means Committee Chairman Kevin BradyKevin BradyKoch-backed group launches six-figure campaign for tax reform Five tax reform issues dividing Republicans Border-adjustment tax proposal at death's door MORE (R-Texas), and Reps.

5636, an amended version of the Executive's tax reform plan, was passed on third and final reading late Wednesday with 246 "yes" votes, nine "no" votes and one abstention. But discussions can only begin in July when the second regular session opens.

One relevant change in the amended version of the bill is the retention of Value-Added Tax exemptions for cooperatives, particularly on sales by agricultural cooperatives, sales by non-agricultural, non-electric and non-credit cooperatives, and gross receipts from lending activities by credit or multi-purpose cooperatives.

However, no joint tax reform plan exists yet, and the White House so far has presented only a single-page summary of its proposal.

Changing the version approved by the Ways and Means committee, the House, voting in plenary, made a decision to keep cooperatives' VAT break, while the tax exemption threshold for bonuses and benefits was raised to P100,000 from P82,000.

Aside from fuel taxes, the bill also imposes a new sugar-sweetened beverage tax of P10 per liter. "The House is frustrated that the White House and Senate keeping taking shots at the BAT" but then don't propose a way to prevent tax loopholes or avoidance strategies, he said.

The excise tax on fuel is expected to generate a revenue of P75 billion in 2018; P120 billion in 2019; and, P150 billion in 2020.

Social support coming from the bill will also "offset" the negative impact of tax hikes, he said.

Household income from cash transfers will add to additional take-home pay expected from the lowering of personal income taxes, Wan said.

  • Zachary Reyes