SENATOR Francis Escudero on Wednesday challenged Senate President Franklin Drilon and House Speaker Feliciano Belmonte to “just do it” and move to pass a bill lowering the personal and corporate income taxes.
“If, as they claim, both the Senate president and the speaker are in favor of tax relief, then we should pass it,” said Escudero who is running for vice president in the next year’s elections.
He said Congress may pass a law to lower personal and corporate income taxes as part of its mandate even without Malacañang’s backing.
He cited the principle of separation of powers as he questioned the two leaders’ position that they would have to consult the Palace on the proposed measures pending in both chambers.
“Why does Congress have to ask permission from the Executive department before doing its job?” Escudero said.
“Whatever happened to the separation of powers and the independence of the three co-equal branches of government?”
Escudero said that, with ample political will and determination, the passage of the tax reform bill would be guaranteed with or without the Palace’s blessing.
“This can be done without the consent of the Executive. Congress has just to reassert its power to legislate on taxation,” Escudero said.
During his first term as a senator, Escudero sponsored a measure that would exempt minimum wage earners in the private and public sectors from paying income tax, which later became Republic Act 9504. The law covers the basic pay, holiday pay, overtime pay, night shift differential and hazard pay received by minimum-wage earners.
Escudero had earlier urged Malacañang to certify as urgent the pending proposals to reduce the income tax rates, and in particular the personal income tax which, at 32 percent, is the highest in Southeast Asia.
He said lowering the personal income tax would help the country’s workforce keep up with the rising cost of essential goods and services.
Finance officials, however, are not keen on backing the initiatives in the House of Representatives and the Senate out of fear that those would cut revenue collections by as much as P30 billion.
Even the Liberal Party’s presidential candidate, Manuel Roxas II, is against lowering the personal income and corporate taxes.
