MANILA, Philippines — President Ferdinand Marcos Jr. would study the possibility of implementing a wealth tax as part of possible revenue measures of the government, Malacañang said Thursday.
Palace Press Officer Claire Castro said the president was considering various policy options after economist Winnie Monsod criticized the administration’s suspension of excise taxes on fuel, saying it benefits wealthier Filipinos more than the poor.
"Just like what the President said, nothing is off the table so all suggestions are being considered," Castro said during a press conference.
However, Castro cited the statement of Department of Economy, Planning, and Development (DepDev) Secretary Arsenio Balisacan on the matter, saying that "imposing a wealth tax on the super wealthy is an economist’s dream because wealth tends to compound."
"A wealth tax slows wealth concentration over generations. Such concentration translates into political and economic power leading to market failures, slowing economic growth and further weakening inclusivity. Implementing or administering a wealth tax is never easy," Balisacan said, as relayed by Castro.
"Most countries that have tried it such as Germany, France, and Sweden abandoned it because of its administrative complexity and the low revenue it generated. Moreover, a wealth tax may encourage capital flight especially when imposed during an economic crisis," he added.
