Gordon hails passage of tax exemption measure for minimum wage earners

Senator Richard Gordon lauded the signing into law of Republic Act 9504 or an act amending Sections 22, 24, 34, 35, 51, and 79 of RA 8424 or the National Internal Revenue Code of 1997.

"The tax exemption law or RA 9504 comes at a very good time and as it gives our wage earners a larger take home pay which will help them catch up with the prices of goods," said Gordon.

The amendment to the National Internal Revenue Code of 1997 increases the exemption of individual taxpayers to a flat rate of P50,000 per individual regardless of status and further exemptions of P25,000 per dependent up to four dependents.

Gordon co-authored RA 9504, having filed Senate Bill 1616 which proposed to amend Section 24 and Section 51 of the National Internal Revenue Code of 1997. Gordon's bill introduced adjustments to income tax rates and exempt small income earners of not over P60,000 and minimum wage earners from paying income tax. It also proposed to relieve small income and minimum wage earners from filing individual income tax returns.

Gordon however stressed that while the tax exemption measure provides some relief, the challenge of present times call for both the people and the government to exert more effort to become more productive. He said that families should work as one to increase the income of the household while at the same time find more ways to save. He urged the government to pour in more funding to stimulate and support entrepreneurs. Gordon likewise called on the administration to switch from a policy of dole out subsidies to a policy of massive infrastructure spending that can pump prime the economy.