Lower corporate tax to open 1.4M jobs in the next decade
Less taxes mean more hiring, the Department of Finance (DOF) said.
There is room to believe that passing the Tax Reform for Attracting Better and High-quality Opportunities (TRABAHO) bill would do wonders for the economy.
The agency estimates that the measure will create more or less 1.4 million jobs between 2021 and 2029, or when the corporate income tax will is reduced to 20 percent from the current 30 percent.
The job creation estimate is based on the outcome that the bill will free up more capital “for firms to invest and hire more workers.”
“At a 26-percent CIT rate in 2023, for instance, an additional 171,940 jobs will be created. The numbers will then increase to 252,031 additional jobs in 2025; by another 361,767 in 2027; and 511,021 more in 2029–or a total of 1.4 million jobs over the 10-year period,” the DOF said in a statement.