Tax Policy Has Gone Bananas

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Tax Policy Has Gone Bananas

Third week
March 2021

Few things reflect a divergence from normal countries’ policy choices than the proposals to modify the Income tax that are in Congress. We have already discussed in this report about the regressiveness of the elimination of Income tax for workers with salaries of up to 150,000 pesos per month, mostly in the second-highest income decile, in addition to destroying the concept of marginal rates. Now it is the turn of the corporate Income tax.