Albay Representative Joey Salceda, chair of the House ways and means committee from which tax measures emanate, said, “the principle of taxing wealth is elegant and sound.”
Salceda added, “We have to penalize hoarding wealth and not making it useful for national development. I have always said that our largest state failure is our failure to tax the rich.”
However, he pointed to some challenges in imposing wealth tax—for one: “Not all wealth is liquid. In theory, realized wealth is taxed by the capital gains tax, but in very unequal societies, the wealthy do not even need to liquidate their big shares of their wealth.”
This was the reason why he shepherded the speedy passage in the Lower House of measures pushed by the Department of Finance under its comprehensive tax reform program.
He said the pending Corporate Recovery and Tax Incentives for Enterprises Act will also activate wealth and later on collect the gains from doing so.