The TRAIN law aims to generate funds for infrastructure projects but disproportionately burdens the poor. While it lowers income taxes for many, it raises taxes on goods that comprise most of the poor's expenses. Most poor families do not pay income tax anyway. So the price hikes will impoverish them further without offsetting tax breaks. While the law envisions long-term benefits, it fails to consider its immediate negative impact on the marginalized. Amendments may be needed to ensure no one is left behind in poverty as others prosper.

1. TRAIN LAW: A Burden for the Marginalized
The Republic act No. 10963 or also known as the TRAIN (Tax Reform for
Acceleration and Inclusion) law is the first step in fulfilling the multi-billion
infrastructure program of the current administration. The law aims to generate
enough funds needed to start the Build Build Build Project. Under this new
law, the personal income tax of employees, both public and private, are
reduced and equalized. As a consequence, there is a higher excise levies
imposed on automobiles, petroleum, coal, mining and sugar based products to
name a few. As the TRAIN law takes effect, it encountered resistance from
different sectors stating certain provisions as ’anti-poor”.
The law emphasizes on tax exemption of those employees having an
annual taxable income of P250, 000.00 and below income this year 2018 to
subsidize them considering the tax increase on certain commodities. However,
the TRAIN laws have a huge effect to the country’s poorest considering that
they are to endure the higher prices of goods and services without getting any
income tax exemptions. Most of the families in the country do not pay income
tax even before the implementation of the law as they are minimum wage
earners or in the informal work with low and unstable incomes. This leaves
those families to be burnt with these high prices without even having income
tax gains. Instead having additional take home pay for each worker given the
lower income tax provided in the law, the poorest of the Filipino households
will continue to have less money income 2020 with full implantation of the
excise tax.
Therefore, the TRAIN law envisions a society in which the economic
status stabilizes overtime. With the long-term effect of having more
infrastructures which can encourage investors, reduce transportations and
increase overall productivity, simplify the complicated tax system, and hinder
inflation, they foresee a better country. But, the administration seems to fail in
perceiving its real effect on the marginalized. Direct or indirect the effect may
be to the poor, it still has a huge impact on their lives. Without any increase in
their take home income, they will never be able to catch up with the increasing
prices of commodities which would lead them to suffer more in poverty.
Having the interest and welfare of the public as their primary concern, it
is just to consider amending certain provisions of the law to ensure that no one
is left behind while the others emerge richer.