Business & Finance

Where Do My Taxes Go?

Where Do My Taxes Go

Only two things are certain in life: death and taxes. For the entirety of your working, adult life, you will be filing one tax form to another and doing tax computations in the Philippines. That’s just a simple fact of life that no upstanding citizen can and should run from.

The Philippine government collects a multitude of taxes like personal income tax, value-added tax, excise tax, estate and donor’s tax, documentary stamp tax, and other percentage tax. We all knew from a young age that we were one day going to pay our own taxes and yet we can’t help but complain every time we do it.

You’ve probably asked yourself a few hundred times why you have to pay taxes aside from the obvious fact that you’ll be in pretty deep trouble if you don’t. After which, you then ask yourself where your taxes go. If you have yet to arrive at an answer for that question, then you’re in luck because we’re going to give it to you!

Where Do My Tax Dollars Go

They Are Used to Pay Our Leaders

“I can’t believe we’re paying these people to run our country.” What a common line, right? You hear it almost every day and see it virtually everywhere when a politician does a poor job or does something the general public disapproves of.

The reason this is such a popular and worn-out phrase is because it is completely true. Our taxes do pay the wages of these government figures starting from the president to the simplest, most-hardworking public employees.

Whether or not they deserve it, though, requires a whole different discussion.

They Are Used to Ensure a Better Future

Our leaders aren’t the only ones getting paid with tax money, all government and public employees get their wages from the tax pool.

The military personnel and policemen who protect us, keep us safe, and maintain peace and order in our country are not exempted from this. All their training and equipment costs, which are supposed to put them in a much better position to defend us, are funded by our taxes.

Not only that, the budget of all public schools around the country are also taken from our taxes. The salaries of the teachers, the cost to construct the buildings, as well as the money needed for the procurement of school supplies – all of it are paid for using taxes. Money flows and is used this way to ensure that the children and future generation of Filipinos – even the poorest of the poor – can afford an education.

They Are Used to Build Necessary Infrastructures

The roads we travel on, the bridges we cross, and the public transportation systems we use every single day were all built using tax money. Some of the funds may have come from foreign investors but majority of the cost to construct and maintain these infrastructures all came from our taxes.

So every time you see these things being built or fixed, know that your money may have been spent on that particular project.

Key Takeaway

As hard as it is for our pockets, we need to pay taxes for they serve a purpose and are for the greater good. Or at least that’s how they are advertised. What we’ve listed above are things where our tax money should be spent on and where it supposedly goes. However, where the majority of it actually goes is not for us normal citizens to know.

Only people in power like the president, senators, and politicians can say for sure how our taxes are actually spent. And with the lack of transparency we have these days, it seems like that’s not something we’ll never really be able to know.

Unfortunately, this doesn’t mean we can just stop paying taxes. We still have to continue doing tax computation in the Philippines; it is still our responsibility. The best thing we can do after we’ve done everything on our end is to believe that our money is being used for the betterment of our country.

About the author

Adrian Crisostomo

Freelance writer from the Philippines. Contributor to multiple blogs. Loves to read and write about anything and everything.

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