Reaction Paper
Reaction Paper
Reaction Paper
Abdulkadir Pampangan
MAED-AS- 2
Tax base and tax rate are important components of tax-- involuntary fees levied
government activities (Uradu, 2020). A tax base is a total amount of assets or income
calculate tax liabilities (Kagan, 2019). Meanwhile, a tax rate is the percentage at which
the tax system of a country is maintained and monitored accurately in order to ensure
economic growth.
Before conducting our research for our report about tax base and tax rate,
I was not actually that attentive about the tax system of our country. However, after the
readings we have gathered about tax base and tax rate, I realized the important role of
tax in upholding the economy of the state. Revenues from the Personal Income Tax
Rate are an important source of income for the government of Philippines (Philippines
Personal Income Tax Rate, 2020). Relating to the current state of the economy today, it
can be said that the Philippines is suffering from low tax revenues due to the pandemic.
General Karl Kendrick Chua, the Covid-19 pandemic caused the country to have the
lowest GDP growth rate of negative .2%, the first recorded recession after 1998. This
fall on the economy is due to severe lockdowns, unemployment, closed business
operations and mass testing conducted to fight the spread of the virus. These
procedures might have impacted the country negatively, but they are needed to ensure
public’s safety.
The situation that we are experiencing today portrays the significance of tax in
maintaining the country’s economy. Without the tax revenues, it will be hard for the
nation to provide for the needs of its constituents. In Philippines, the Personal Income
Tax Rate is a tax collected from individuals and is imposed on different sources of
income like labour, pensions, interest and dividends Philippines (Philippines Personal
Income Tax Rate, 2020). Revenues from taxes were used to accommodate the needed