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Texters to Join Taxpayers' Revolt over New Revenue Measures
by TXTPower Saturday, Jul. 17, 2004 at 8:00 AM

“The government’s continued failure to curb corruption, waste, inefficiency and misprioritization of resources compounded by the most stupid suggestions from the so-called bright minds in the IMF and the finance department –these are conditions that may spark a taxpayers’ revolt,” predicted Anthony Ian Cruz, a co-founder/convenor of the TXTPower.

TXTPower, the recognized voice of citizens of the world’s text messaging capital, today vowed to join, if not initiate, a taxpayers’ revolt over the proposed new text and the other revenue measures prescribed by the International Monetary Fund.

“The government’s continued failure to curb corruption, waste, inefficiency and misprioritization of resources compounded by the most stupid suggestions from the so-called bright minds in the IMF and the finance department – these are conditions that may spark a taxpayers’ revolt,” predicted Anthony Ian Cruz, a co-founder/ convenor of the TXTPower.

Cruz said that the “real culprits behind the fiscal crisis are being left out and we would be fried by double, nay, triple taxation in what is shaping as the most uncreative solutions to today’s economic problems.”

According to TXTPower, mobile phone users in the Philippines already pay at least two taxes – 10 percent VAT and 10 percent overseas communications tax – be they on postpaid or prepaid plans.

Cruz lambasted proponents of the new text tax for claiming that “texting” is just a nonsensical waste of money as their primary rationale for proposing the new state exaction. “Far from it, texting has become a necessity and a very affordable way of keeping Filipino families, workmates and friends in close touch.”

He accused the multilateral financial institution of pushing the new revenue measures, including the new text tax, “as a means of ensuring that the very corrupt government would have enough funds to pay fraudulent and onerous obligations to the IMF.”

“Never mind if the government continues to lose money on corruption or inefficient tax collection or generous tax breaks for multinational companies reaching hundreds of billions of pesos in the last five years or that Filipinos can no longer shoulder new economic burdens. For the IMF, its always the foreign debt,” said Cruz.

TXTPower suggested that the government implement a cap on debt payments and to reduce non-productive spending on such items as intelligence, military modernization and unaccountable, secret funds allocated for the President.

Cruz said that the government should also do away with the generous tax breaks and tax rebates given to multinational companies.

“Each year, the government gives back tens of billions of pesos to these big, profitable companies while ordinary taxpayers shell out huge chunks of their meager incomes for various taxes. Its just unfair,” said Cruz.

“The government would do well in asking the Top 1000 Corporations to each donate even just one percent of their total net income to the government to finance new schoolhouses, hospitals and affordable housing for the poor,” he said. “This is on top of their prompt payment of their correct taxes.”

Another counter-suggestion is to impose a Luxury Tax on the purchase of second or third multimillion-peso mansions or houses, ranches, golf course shares, yachts, private planes and other luxuries.

“At a time of grave economic crisis, such displays of exorbitant living should be taxed heavily by the government. The common folk meanwhile should be spared,” Cruz said.

TXTPower has started an online/e-mail petition against the new text tax.

The group also vowed to lobby Congress wants it opens its session and to appear before House committees to oppose the new revenue measures.

It is also planning demonstrations at the Batasan Complex, the IMF resident representative office at the Central Bank, the Department of Finance and the Bureau of Internal Revenue as well as the offices of well-known big corporate tax evaders.

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