Effect of Tax Reform Acceleration Inclusion Law: To The Middle-Class Employees in Cavite

Posted: 19 May 2020

Date Written: April 23, 2020

Abstract

When Tax Acceleration Inclusion Law implemented in the Philippines last 2017, the regular wage earners caught in the middle between the beneficiaries of tax exemption and price hike of the primary commodities & vices. A few research done (Bonghanoy & Etcuban, 2019) that focuses on the imposition of TRAIN Law to the local economy of Cebu City, specifically from four sectors: non-working, public employees, private employees, and micro-entrepreneurs. And Rosario G. Manasan's (2018) study focuses on the implications on the distribution of tax burden across income groups, economic incentives in affected sectors, national government revenues, and likely impact on tax compliance. However, this research establishes the significant effect of TRAIN Law for Middle-class employees on the tax exemption, personal savings, buying power, and accelerated government projects & services on improving their living. On the data gathering, the adopted questionnaire from Cebu Technological University Graduate School used as the primary tool in the interview and collecting information. Sixty (60) respondents from the middle-class employees selected from Cavite. The accomplished questionnaires were collected, and the results were tallied and tabulated using the Statistical Package for Social Sciences (SPSS). For the incidence of non-response on every question and the trend of responses noted. The gathered data statistically treated using frequency, simple percentage, mean, Chi-square test of independence, and ANOVA.

Keywords: beneficiaries, tax-exemption, savings, middle-class, price hike, economy

JEL Classification: P16

Suggested Citation

Mutia, Tilfemar, Effect of Tax Reform Acceleration Inclusion Law: To The Middle-Class Employees in Cavite (April 23, 2020). Available at SSRN: https://ssrn.com/abstract=3583317

Tilfemar Mutia (Contact Author)

Independent ( email )

United States

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