IBON bats for wealth tax on over 2,000 Filipino billionaires

Economic think tank IBON Foundation has called for a wealth tax which it estimated would raise some P467.1 billion in revenue for the government’s social services and welfare programs.

According to IBON, the richest 1% of the Philippine population — estimated by the government at 109.035 million — holds at least 40% of the country’s wealth.

“Taxing the super-rich is an effective way to raise much-needed funds for expanding social and economic services while reducing inequality,” the group said in a statement.

IBON estimated there are 2,919 Filipino billionaires with a cumulative wealth of P8.1 trillion. This translates to less than 0.003% of the population holding 16% of the country’s wealth.

The group said taxing the billionaires with a wealth tax of 1% of wealth over P1 billion, 2% over P2 billion, and 3% over P3 billion would  raise some P467.1 billion.

Combined with realignments from non-essential infrastructure, defense, and other items in the proposed 2022 national budget, IBON said the amount is more than enough to provide P10,000 in emergency aid to 18.6 million households, P101 billion for MSMEs, and P220 billion for agricultural support.

“The remainder can be used to hire additional health workers, for more aggressive testing and tracing, and to ensure free vaccination for all, IBON said,” noting that the country’s rich continue to accumulate more wealth amid the COVID-19 pandemic.

According to Forbes’ Philippines’ 50 Richest, the country’s most affluent saw their cumulative wealth grow 30% to $79 billion in the past year, with four of them adding over $1 billion each to their net worth.

“A wealth tax also improves democracy in the country. If we want to change our politics, we also have to change the maldistribution of wealth that gives a handful too much power,” IBON said. -NB, GMA News