Manuel L. Quezon

“ Fortunately, there are many sources from which we can raise new taxes without causing any injustice to those who will have to pay, for we must see to it that these new taxes are just and fair, that they do not discourage initiative in sound business enterprises. Indeed, my very recommendation that the sales tax and licenses be done away with is in line with our purpose not to allow taxation to retard the proper economic development of the country nor to jeopardize the confidence of business in us. ”

“ I am sure that the relief which thousands and thousands of small merchants all over the Philippines will receive from the abolition of the cumulative sales tax and of any tax on articles of prime necessity, will in itself compensate, in terms of satisfaction with their Government, for the loss, if any, that the treasury may suffer. I believe, too, that it is in part due to the difficulties that the average small Filipino merchant finds in keeping his books and paying his books and paying his sales tax that the retail trade is not largely in Filipino hands. ”

“ Without a strict application of social justice to all elements of the community, general satisfaction of the people with their government is impossible to achieve. Here, in the just and equitable solution of social problems, is the real test of the sufficiency of democracy to meet present-day conditions of society. ”

“ The present system of taxation in the Philippines is a source of the greatest injustice from which our people suffer. It may properly be said that our burdens of taxation rest most heavily upon the masses, and very lightly upon the rich. ”

“ The power to tax may also be used to prevent the accumulation of vast wealth in a few hands. This is not to deny the right of property of the individual, but it is to affirm that this right may be limited by the State when social well-being demands it. ”

“ In the past, taxation has not been concerned with principles of justice and rarely has it been concerned with bettering the people. Rather it has sought only to produce revenues and to place the burdens on the backs of those least able to remonstrate. ”

“ By means of the radio, police administration is made easier, and property and life made more secure. To tax such an instrument by an almost prohibitive charge to the poor is as indefensible as a prohibitive tax on the daily press. ”

“ Needless to say, if most of these taxes are paid by the consumer, it is the great mass of the people who are carrying the burden.
The extent to which the Commonwealth is supported by the great mass of the people through taxes on consumption is not generally realized. Taxes on consumption are of necessity taken almost entirely from the poor. These taxes are added to costs as are all other elements of the cost. Thus, in 1936 the total revenue of the National Government, including the customs, amounted to approximately P85,000,000. ”

“ Our tax system, unlike our political system, is still a heritage of earlier centuries, out of harmony with those principles which should guide progressive nations today. The Filipino people have one of the most progressive constitutions in the world. ”

“ Inheritance and income taxes that the Government must bear in mind the need of reverting to the nation large amounts of wealth that may be accumulated in a few hands. From the increase collections accruing to the National Government from the additional income tax that we contemplate imposing, an adequate proportion should be set aside for the provincial and municipal governments. ”

“ Another advantage to the Government in the amendment of the sales tax law as suggested is that there can be no evasion of the payment of the tax as in the past. Nor will there be any need for a large number of internal-revenue collectors and inspectors who, in the performance of their duties, are unavoidably causing annoyance and irritation especially among the small merchants. Many small merchants, insufficiently trained to handle complicated accounts, waste time and energy in keeping their sales books in order. ”

“ Now we are fully prepared to act and we must act at once, if our people are to continue placing their confidence for the remedy of the social evils which embitter their life entirely in our hands. The last general elections have proven beyond question that the people have wholeheartedly and enthusiastically approved of our avowed policies. ”

“ As we reduce the burden that is being unduly placed upon the masses of our people, on the one hand, and give them the wage that they are entitled to earn, on the other, we shall ultimately raise the standard of living as we reduce its cost, and thereby increase the purchasing power of the wage earner. ”

“ As for the rest of the country, all the newly elected governors are Nacionalistas; only one or two provincial board members and an occasional mayor belong to the opposition.
Gentlemen of the National Assembly: The time to act is now. Deeds and not words is what our people want. We dare not disappoint them. ”

“ The root of the worldwide discontent among peoples, which gave birth to communism in Russia and which has been at the bottom of every revolution of the last forty years, has been the utter disregard by governments of the social purpose of property. ”

“ It has done this by taxes on consumption, on sales, on licenses to engage in business, trade or profession, and by excessive charges on services which should be rendered by the Government and for which only a sufficient charge should be made to cover the cost. Those who rule have not paid their share. They have exempted the wealth they owned and the incomes they enjoyed almost wholly from taxation. This has been true throughout the world. It has been true of the Philippines as well. ”

“ It is my firm belief that if the recommendations made in this message are carried out by the National Assembly, we shall have gone far in our efforts to lay down the foundations of a nation wherein each citizen will contribute his part in the maintenance of the Government in proportion to his ability or resources. ”

“ The radio should be available to every family. It is a means of political contact with their Government. It is a carrier of news, by which the people may be informed as to what is going on in the world. Through the radio adult education is possible. ”

“ The City of Manila, which, like every large city in the world, is usually in the opposition by large majorities, has voted practically for the whole Nacionalista ticket, the election of two councillors from the opposition being purely a vote for the individual rather than for the party to which each belongs. ”

“ There are still other taxes on our cultural life that should be repealed or very materially reduced. One of these is the tax on radio sets which should not exceed P1 a year, except in the case of expensive sets which are luxuries. ”

“ If it is the preference to keep this tax, at least there should be an exemption for those who have not been in the profession more than five years. In order that the Government may have a record of these practicing professionals, they may be compelled to pay only what is necessary to defray the cost of keeping that record. ”