Wealth tax? Palace says all suggestions being considered

Malacañang on Thursday said all suggestions are being considered amid present challenges brought by the Middle East tension, which caused oil price shocks in the country. 

At a press briefing, Palace Press Officer Undersecretary Atty. Claire Castro was asked about the suggestion of former National Economic Development Authority Secretary Winnie Monsod to implement a wealth tax.

''Sabi nga po ng Pangulo, nothing is off the table so lahat po ng suhestiyon ay kinokonsidera,'' Castro said.

(Just like what the President said, nothing is off the table so all suggestions are being considered.) 

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,'' Castro read. 

''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,'' she added.

Castro further said the Department of Trade and Industry as well as the Department of Agriculture are ensuring that prices of goods will not spike.

Balisacan earlier warned the country’s inflation rate could shoot up to double-digit levels as diesel prices are seen to grow 176% to P162.50 per liter in May should crude hit $200 per barrel—the “most severe scenario.” —AOL, GMA Integrated News