CHAPTER 1

THE PROBLEM AND ITS BACKGROUND

Introduction

“Taxes are the lifeblood of the government.”

It is true that the taxes are the main tool in the process of the Philippines’

improvement. Without the taxes, the government cannot deliver government services;

build infrastructures including schools, houses, and offer health and education programs.

It is the government’s obligation to use the taxes in enhancing the lives of the people and

to improve the country’s economy. On the other hand, the citizen of the Philippines’

obligation is to pay their taxes regularly.

According to Fred Michael L. Go (2015),a freelance writer of Scribd, the taxation

system of the Philippines started during the pre – colonial (900-1521) wherein the

governments were first called as “barangays” and are ruled by a leader called “datu” or

“raja”. The Filipinos back then practice paying their taxes or “handug” regularly for the

protection from their “datu”. This taxation system continued until the Spanish period

(1521-1898) wherein, the “New Income – Generating means” has introduced. The Filipinos

during the Spanish colonial period have to pay general tax called “tributo” which amounted

to eight reales. Those who pay the tribute are the males from the time that they turned

eighteen years old, continuing to pay the tribute until they reach the age of fifty and the

professionals.

Today, the tax system is still continuing to serve as the main obligation of each of

the Filipinos living in the Philippines. It has given a great effect to many of the people

1
especially the workers or the employees. The I-witness reporter Maki Pulido (2017)

testified that the consistent price hikes have greatly affected the low-income earners and

the persons who are in the middle class for many years. Through the years that have passed,

this is the main topic that we always see or hear in the News and documentaries. To finally

solve this problem, President Rodrigo Duterte signed last December 2017 the newly

approved implementation of taxation which is the TRAIN Law or Tax Reform for

Acceleration and Inclusion.

What’s in the newly approved TRAIN Law? According to the PinoyMoneyTalk

(2018), this law includes new personal income tax rates, lower tax rates for professionals,

and reduced tax on 13th month pay and other bonuses. It is now obvious that people

especially employed workers may receive the salary that they deserve through using their

annual salaries as basis to implementing the new taxation. The Government increased the

tax on drinks that contain high sugar and caloric or non-caloric sweeteners, taxes on LPG,

Diesel, Gasoline, and other fuel products, taxes on automobiles and cars, tax on tobacco

products, and tax on Cosmetic surgery and Aesthetic procedures.

“Nonetheless, the new law also contains praiseworthy provisions which aim to

simplify tax compliance.” - Edward G. Gialogo (2018), a Tax Lawyer and a freelance

writer of Rappler

These changes in the system of government in taxation may significantly contribute

to the changes of lifestyle of many of the Filipinos. The changes in the taxation such as the

increasing of various products - more specifically, the things that satisfy the “wants” of the

people may give a guide to change his lifestyle into simpler one.

2
Statement of the Problem

This study sought to describe the views of the teachers to the effects of Tax Reform

law.

Specifically, the study aimed to answer the following questions:

1. What is the level of the teacher’s responsiveness in terms of the following:

 Budget

 Price hikes

 Decision-making

2. What is the level of effectivity of the new Tax Reform law in terms of the following:

 Monthly Income

 Price hikes

 Solving the problem between Social Classes

3. How do the teachers respond in the effects of Tax Reform law specifically in

terms of the following:

 Lowering of Personal Income taxes, except for high income earners

 Removal of certain VAT Exemptions.

 Tax on Sugary Drinks

3
Significance of the Study

The Tax system plays a crucial role in the Philippine’s economy. At this time,

plenty of researches are very much in need as guides of the Government in decision making

to enhance the Tax Reform Law in a specific group of people. Since the

Government has the hand to control the country, a study on the views and opinions

of Tax Reform Law to the teachers is also of great importance.

The researchers aim to inform the future researchers on the positive and negative

effects of the Tax Reform Law to the specific average income earners. This study may

come up with a decision whether the government must raise awareness in pursuing this

Law because it is a recent issue occurring in the Philippines.

Since the study is intended for the teachers because this is the group of people that

the researchers believe that are directly affected by the Tax Reform law because of their

low salary rate according to the Department of Education or DEPED, the researchers may

be assured that the study will truly emphasize the specific benefits of the new Tax Reform

Law to practically help them to be income wise. This study will also aim to answer the

question about the issue in inequality between social classes since the researchers’ main

focus are the low income earners and they believe that most respondents of this study are

currently affected by the changes because of the TRAIN Law.

4
Scope and Delimitation

The study focused on describing the views and opinions of the teachers regarding

the Tax Reform law. It was limited to the use of questionnaire and interview to gather

needed data from the involvement and participation of Woodridge College with the

population of 50 teachers from Pre-school to High school. The study developed was only

based from the determined responses of the study’s participants.

5
 CHAPTER 2

CONCEPTUAL FRAMEWORK AND REVIEW OF RELATED LITERATURE

Conceptual Framework

6
Review of Related Literature

In order to improve the Tax Reform Law for Acceleration and Inclusion, we need

to know the different factors surrounding this law, the different views and opinions of the

affected members of the community, and how the Tax Reform law works most especially

for the teachers. According to the Department of Finance, The Tax Reform Law corrects a

number of deficiencies in the tax system to make it simpler, fairer, and more efficient.

According to Edward G. Gialogolo, a Tax Lawyer and a Business Law Reviewer, it does

change a lot of things most especially this law systematically increased and decreased

prices on some non-essential services (Cosmetic Surgery) and products.

Last year, President Rodrigo Duterte promised to increase the salary of policemen

and soldiers that took effect earlier than the teachers and there were speculations that the

president is playing favorites, but he denied it immediately.

"Inuna ko ang army pati pulis kasi sa drug [war] ko…Ito, buhay [ang itinataya].

'You go to Mamasapano then die there.' 'Yes, sir!' Inuna ko sila kasi they keep the

country strong," Duterte said.

According to Jonathan Cellona, a Freelance Writer of ABS-CBN

News, after this news have released in the Philippines, Teachers group Alliance of

Concerned Teachers (ACT) bang empty pots as they call for a salary increase in a

protest at the Department of Education's main office in Pasig City in October 2017.

Because of this incident, Cellona reported that President Rodrigo Duterte have

7
 finally cleared out that the salary increase of teachers be funded in the second

package of tax reform.

“MANILA (3rd UPDATE) - President Rodrigo Duterte is now seeking to increase salaries

of public school teachers, Malacañang said Tuesday, after the government moved to

double the pay of soldiers and police officers.

Presidential Spokesperson Harry Roque said Tuesday that Duterte has instructed the

budget department to find means to increase teachers' pay as the government prepares for

the submission of its second tax reform package to Congress.

Roque could not say how big of an increase the President is seeking but said it may be the

same as the hike in the pay of Armed Forces of the Philippines (AFP) and Philippine

National Police (PNP) personnel.” – Jonathan Cebello, a reporter and a freelance writer

of ABS-CBN News.

It is true that since then, the teachers have been seeking for a solution to

their increase of salary. Because of the old tax system and the education system of

the Phuilippines , the problem surrounding the possibility that the teachers may

have a chance for increase in salary was not given a concrete solution. One teacher

from the Daily Inquirer News shared his opinion:

“I opted to get out of teaching after spending 15 prime years. I beg to disagree with

Education Secretary Leonor Briones’ claim that public school teachers are not underpaid

(News, 6/21/17).

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As a matter of fact, public school teachers are not only underpaid; worse, they are

“underappreciated.” Secretary Briones mentioned something about the teachers’ two-

month paid leave during summer vacations. But the summer break is not totally carefree

days for our unsung heroes who have to attend to tons of yearend reports/paperwork,

spearhead “Brigada Eskwela,” serve during enrollment; participate in in-service

trainings, etc.

How about the trainings for teachers? In those years that I was a teacher, I attended sorely

boring good-for-nothing generic mass training programs, which to most attendees were

conducted by the Department of Education just to comply with its mandate to subject its

teachers to professional development. What a waste of resources and time. Why not provide

these teachers, instead, with reading materials, books, newspapers, magazines, and the

latest learning materials, etc.?

Yes, the salary of teachers has been upgraded after I left the service. But still, such an

increase can never compensate for the high demands of their calling. Voluminous

paperwork that takes so much of the teachers’ time, denying them opportunities to spend

quality time at home. Issues on delayed salaries, salary increments, chalk allowance,

clothing allowance, etc. persist, even in the city. How much more for teachers in the

provinces and rural areas?” – Inquirer. Net (July 3, 2017)

This opinion given by one of the teachers in the Philippines, delivered and described how

teachers work but still given not enough salary.

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 After the Tax reform law was approved and became effective in our country, other

than having some changes in the price differences in services and products, the teachers

started to receive higher salaries.

“MANILA, Philippines — Public school teachers will receive additional net take

home pay and allowances starting January 2018, the Department of Education

announced Friday.

The announcement comes on the heels of the implementation of the Tax Reform for

Acceleration and Inclusion law Monday.

Under the measure, Filipinos making an annual taxable income of P250,000 and

below will no longer need to pay income tax. But the lower personal income will

be offset by higher prices of basic goods and services.

DepEd said that with the TRAIN law implementation and the third tranche of the

Salary Standardization Law, a Teacher—salary grade 11 earner—will receive a

gross basic salary of P20,179 and will have a net take home pay of P20,012.

This is 16.21 percent or P2,792 higher than the take home pay under the 2017 tax

schedule amounting to P17,220.” - Cabico, ABS-CBN News (2018)

In this case, the teacher’s money and budget will surely increase but they still are

affected by the price hikes of some products. Now it depends on their expenses whether

the TRAIN will be at their advantage, disadvantage, or nothing will change for them at all.

10
Would people benefit from the law at all? There are a lot of supporters of this law but a

man named Royd thought otherwise.

Another issue that surfaced the TRAIN law is where the government would get the

budget for the country. With TRAIN, the personal exemption is increased, but one of the

main constituents that greatly concerns people is the VAT or Value-added Tax.

VAT Exempted products, groups, or service

● Food and agricultural products

● Senior citizens

● Persons with Disability (PWD)

● Cooperatives

● Tourism

● Education

● Renewable energy

● Health

● Enterprises and BPOs located in Special Economic Zones

● Condominium association dues

● Rentals and leases below P15,000 per month

And there are also items that will benefit in not paying the VAT

● Businesses with annual gross sales of P3 million and below

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 ● Government owned and controlled corporations (GOCCs), state universities
and colleges (SUC), and government agencies

● Medicines for diabetes, cholesterol, and hypertension (VAT exemption

beginning 2019)

● Socialized housing, or houses priced at P450,000 and below, and low-cost

housing, or those priced at P3 million and below (VAT exemption retained

from 2018 to 2020 only)

Other than the Value-added tax, there are other products and services that

were affected by the Tax reform law as stated by Chad de Guzman, a freelance writer of

CNN Philippines, the list of all Tax increase in Products after the law was approved:

 Higher petroleum taxes

 Sugar and tobacco

 Taxes on Cars and Automobiles

 Donor’s Tax

 Estate Tax

 Tax on Cosmetic Surgery and other Aesthetic Procedures

 Documentary Stamp Tax

 Stock Transaction Tax

 Foreign Currency Interest Income Tax

With all these information coming from the official News Websites, it is

clearly stated how the Tax reform law increased some specific products and

services. Many news would say that the Tax Reform Law will benefit most of the

12
employees especially the teachers, but knowing that most had increased the excise

tax on commodities and services, which may also affect the public and private

school teachers. A news from the Negros Occidental reported that a group of

teachers led by Gualberto Dajao, president of Bacolod City Public School

Federation and chairman of Alliance of Concerned Teachers Negros, present their

demands to the government in a press conference at Negros Press Club in Bacolod

City.

“Gualberto Dajao, president of Alliance of Concerned Teachers-Negros,

said in a press conference Monday at the Negros Press Club building they are

demanding the national government to raise the salary of teachers at the entry

level. He said the administration had recently increased the take-home pay of

teachers by P25 per day to appease them due to the increase in salaries of

policemen and soldiers. However, it is not enough, he said. “It can’t even buy two

bottles of mineral water.” Dajao slammed the government for claiming that the

teachers’ pay increase is not a priority. The government had said there would be

no salary increase for teachers until 2019, he added. At present, teachers in the

entry level have a take-home pay of about P5,000 from their meager gross salary

of P20,000, he said, adding that some of the public teachers are debt-laden because

their pay is not enough. For the protest action on Wednesday, Dajao said teachers

will bring bottles of mineral water which symbolize that their increase of P25 per

day is not even enough to pay for it. He added that the bottle of mineral water costs

P15, and teachers need two bottles to relieve them for the day, and the P25 salary

13
increase is not even enough. Dajao said the government must raise the salaries of

teachers to P29,000, which was the initial plan. Also, the public school teachers

demanded the release of their 2016 Performance-Based Bonus. Dajao said all

government agencies except the Department of Education have already received

their bonus. He pointed out that the Department of Budget and Management said

the requirements were not submitted while field and schools division offices

claimed otherwise. Public school teachers are also demanding to abolish the

Continuing Professional Development law which is a professional enhancement of

teachers, Dajao added. He said they are not against the teachers’ development,

however, training and seminars paid by the teachers from their own pockets were

not counted in their credentials as the service providers were not accredited by the

Professional Regulation Commission. “Even without the law, we can still (work

on) the professional growth of the teachers,” he said. Dajao said they are

demanding to stop the implementation of the new tax reform law. The

implementation of the law had increased the excise tax on commodities and

services, which also affect the public school teachers.” – Marchel P. Espina, a

writer and a reporter from Sun Star Bacolod

Gualberto Dajao courageously represented the teachers of the Public School to

address the “burden” that they have experienced since the Tax Reform Law was

implemented. The increased salaries that they receive were also used to pay for

taxes through the VAT, the commodities, and services.

14
Definition of Terms

The following terms were defined operationally to facilitate the understanding of the study:

Decision-Making. It is the process of choosing among alternatives. Decision-making

includes the “mental activities that recognize and structure decision situations and then

evaluate preferences to produce judgements and choice must also be distinguished from

the broader process of problem solving. Problem solving is considered a series of related

decisions.” (Razik, 2000)

Teacher. A profession defined as “…the only person who is capable of imparting

knowledge and shaping the youths to the wider scope of knowledge. Teachers are capable

of living and moulding the youths such that their power is paramount as they determine the

fate of the society. Both teachers and parents live with the children for a long time and

hence they are capable of imparting knowledge, skills an values that cannot be easily

challenged by the society.” (Nyerere: 27th August 1966)

VAT (Value Added Tax). It is a form of sales tax. It is a tax on consumption levied on the

sale, barter, exchange or lease of goods or properties and services in the Philippines and on

importation of goods into the Philippines. It is an indirect tax, which may be shifted or

passed on to the buyer, transferee or lessee of goods, properties or services. (Bureau of

Internal Revenue)

Income Tax. It is a tax that governments impose on financial income generated by all

entities within their jurisdiction. By law, businesses and individuals must file an

income tax return every year to determine whether they owe any taxes or are eligible for

15
a tax refund. Income tax is a key source of funds that the government uses to fund its

activities and serve the public. (Investopedia, n.d)

Hidden Tax. These are the taxes that are indirectly assessed upon consumer goods without

the consumer's knowledge. Hidden taxes are levied upon the goods at some point during

the production process and therefore raise the cost of the goods sold. However, this tax is

never revealed directly to the consumer, who simply pays a higher price for the good, not

knowing that part of that price is due to this tax. (Investopedia, n.d)

Statement Income Tax. Tax levied on income at the state level. State income taxes have

their own set of deductions and credits that may be awarded for certain activities, such as

contributing to a state-sponsored 529 plan. Taxpayers who itemized deductions on their

federal returns may deduct state taxes paid on Schedule A. (Investopedia, n.d)

Mil Levy. The mill levy is the assessed property tax rate used by local governments and

other jurisdictions to raise revenue in order to cover annual expenses. The mill levy is

calculated by determining how much revenue each taxing jurisdiction will need for the

upcoming year, then dividing that projection by the total value of the property within the

area, and finally adding up the rate from each jurisdiction to get the mill levy for the entire

area. (Investopedia, n.d)

Income Tax Return. It is a document you file with the Internal Revenue Service or the

state tax board reporting your income, profits and losses of your business and other

deductions as well as details about your tax refund or tax liability. (Investopedia, n.d)

16
TRAIN Law. The Tax Reform for Acceleration and Inclusion (TRAIN) is the first package

of the comprehensive tax reform program (CTRP) envisioned by President Duterte’s

administration, which seeks to to correct a number of deficiencies in the tax system to make

it simpler, fairer, and more efficient. It also includes mitigating measures that are designed

to redistribute some of the gains to the poor. (Department of Finance, 2018)

17
 CHAPTER 3

RESEARCH METHODOLOGY

This chapter describes the research design, research participants, instruments, data

gathering procedures and the statistical treatment used in the study.

Research Design

This study employed a mixture of qualitative and quantitative method of research.

It describes the status of the private school teachers and the Tax Reform Law; it also

focuses into the possible relationship between the private school teachers and the Tax

Reform Law. According to Sharan B. Merriam, the professor emerita of adult education at

the University of Georgia, an author, coauthor, or editor of more than fifteen books,

including Adult Learning: Linking Theory and Practice and Qualitative Research in

Practice, both from Jossey-Bass, and Elizabeth J. Tisdell, a professor of adult education

and coordinator of the doctoral program in adult education at Penn State University

Harrisburg, qualitative research method requires good observation to thoroughly study case

studies, ethnographies, and other qualitative action research studies. The primary sources

of data are interviews which may include providing survey questionnaires to indirectly

interact to with the respondent/s.

On the other hand, according to Earl R. Babbie, the author of the book entitled “The

Practice of Social Research”, quantitative research method uses objective measurements

which may include statistical and mathematical analysis of data through polls in

questionnaires or surveys. The critical distinguishing characteristic of this research method

is the effort to estimate a relationship, as distinguished from simple description.

18
Subject and Sampling Technique

The subject of the study consisted of teachers from pre-school to highschool with

the population of 50 taken from Woodridge College in Soldiers Hills IV, Molino 6, Bacoor,

Cavite. All the 50 teachers from pre-school to highschool were totally taken as respondents

of the study. This study used Stratified random sampling technique wherein the study was

done by creating different classes. The grouping done in this study was based on income

groupings.

Table 1 . The presentation of the sample

respondents.

19
Data Gathering Instrument

The study used questionnaire as the main tool for the gathering data. The instrument

consists of fourteen (14) questions that directly target the measure of level of relationship

of the private school teachers with the Tax Reform Law.

Name (optional):____________________________

Subject taught: _____________________________

Good day! We are students from Grade 10- Trustworthy, conducting a research about the Effects of Tax Reform Law and the Views of the
Teachers on it. Your honesty in answering the following questions will be much respected and be rest assured that your answers will be
treated with utmost confidentiality

Directions: Check the corresponding circles below.

1. On a scale of 1 to 10, one being the lowest and ten being the highest, How well aware of you of the tax reform law? ________

2. How did you know about the tax reform law?

(Check as many as possible)
○ News ○ Social Media ○ Articles ○ From your peers
○Please specify: __________

3. In what areas can the Tax Reform Law help the teachers?Chapter 4
○ In budgeting ○ Afford quality health care services
○ In paying bills ○ Please specify: __________

4. On a scale of 1 to 10, one being the lowest and ten being the highest, how effective is the Tax reform law in terms of improving the
everyday lives of the teachers?________

5. Check the following areas in which you think the tax reform law lacks at:
○ Personal income tax ○ Tax exemption
○ Price ○ Please specify: __________

6. How much do you spend for your food and transportation in a week, before the Tax reform law?
○ Less than 100 ○ 200-1000 ○ 2000-5000 ○ more than 5000

7. How much do you spend for your food and transportation in a week, after the Tax reform law?
○ Less than 100 ○ 200-1000 ○ 2000-5000 ○ more than 5000

8. How many dependents do you have?

○1 ○2-4 ○5+ ○none

9. How much money can you save from your income before the tax reform law?
○ Less than 100 ○ 200-1000 ○ 2000-5000 ○ more than 5000

10. How much money do you think can you save from your tax exempted income in a week?
○ Less than 100 ○ 200-1000 ○ 2000-5000 ○ more than 5000

11. Which of the following tax increased products are you okay with?
○ Soft drinks ○ Canned good
○ Caffeine ○ Vehicles ○ Petroleum ○ Make-up
○ Soy sauce, Fish sauce, and Vinegar

12. Which of the following VAT exempted products, groups, or service do you benefit from?
○ Rentals and leases below P15000 per month
○ Medicines for diabetes, cholesterol & hypertension
○ Education
○ Persons with disability
○ Socialized housing, or houses priced at P450000 and
below, and low cost housing or those priced at P3 million
and below.

13. Do you agree that the tax reform law can solve the problem between Social Classes?
○ I strongly agree ○ I agree ○ I disagree ○ I strongly disagree

14. Do you agree with the implementation of the Tax reform Law? Why or why not?
______________________________________________________________________________________________________________
Figure 1 . The presentation of the
______________________________________________________________________________________
_________________________________________________
questionnaire.
______________________________________________________________________________________________________________
____________________________________________________________________________________________________

20
 CHAPTER 4

PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

This chapter presents analyses and interprets the data gathered in this research study. The

various results were presented in the succeeding charts with corresponding discussions

and explanations. It also answered specific problems given in the previous chapter. The

study focused on describing the Effects of the Tax Reform Law to the Teachers and Their

Views on it.

Correspondents’ Profile

The subjects of the study were asked to rate their level of awareness of the Tax Reform

Law, What they know about the Tax Reform Law, and how much they spend before the

Tax Reform Law.. The data were taken from the responses of fifty teachers and were

summarized and presented in the chart below.

Figure 1 shows the level of awareness of the teachers rating from 1 to 10, one being the

lowest and ten being the highest.

21
 Figure 1

Awareness of the teachers to the Tax Reform Law

Level of Awareness Rank Interpretation

10 0.8 Extremely Aware

9 0.8 Very Aware

8 0.46 Moderately Aware

7 0.36 Aware

6 0.8 Slightly Aware

5 0.02 Somehow Aware

4 0 Not Aware

3 3.2 Moderately Not Aware

2 3.2 Very Not Aware

1 0 Extremely Not Aware

22
Figure 2 shows how the teachers attained their knowledge of the Tax Reform Law.

Figure 2

Chart 1 show that only 8% of the 50 teachers are fully aware of the Tax Reform Law, and

based from Figure 2, most of the teachers knew about it from the news and social media.

In this case, the views of the teachers on the Tax Reform Law are affected by their

understanding on it. Hence, the government should make sure that everyone is very

familiar to the Tax Reform Law so they can get the feedback of the teachers and improve

it further more.

23
Figure 3 shows how much the teachers have spent on their food and transportation in a

week before the Tax Reform Law was passed.

Figure 3.

Before the Tax Reform Law, 46% of the teachers spend a minimum of 200 and a
maximum of 1000 pesos on their food and transportation in just a week.

24
 Figure 4

Figure 4 shows the number of the dependents of the teachers. Majority of the teachers

does not have a dependent, but 20% of them has 2-4 dependents.

Figures 3 and 4 just show how much the teachers spend on transportation and food while

having a dependent before the enforcement of the Tax Reform Law and can be compared

later to how much they spend after the enforcement of the Tax Reform Law.

The Effects of the Tax Reform Law to the Teachers

The teachers were asked how much they’ve spent after the execution of the Tax Reform

Law, How effective is the Tax Reform Law, How much they can save from their income

25
before and after the tax reform law, and which vat exempted products or services they

benefit from. The following data collected are presented and summarized on the charts

below.

Figure 5 shows how much the teachers spend on transportation and food after the Tax

Reform Law.

Figure 5

As seen in the Chart 5, the majority which is, the teachers who spend 200 to 1000

decreased from 46% to 40%. while, the teachers who spend 2000-5000 increased from

20% to 24% and also the teachers who spend less than 100 increased from 2% to 4%

26
which reveals that the Tax Reform Law caused the teachers to spend more on the

transportation and food, and caused them to spend less on it.

In the Figure 6, the teachers were asked to rate the level of effectiveness to the teachers of

the Tax Reform Law, 1 being the lowest and 10 being the highest.

Figure 6

Effectivity of the Tax Reform Law to teachers

Level of Awareness Rank Interpretation

10 1.13 Extremely Effective

9 1.13 Very Effective

8 0.05 Moderately Effective

7 0.68 Effective

6 1.65 Slightly Efective

5 1.65 Neutral

4 3.4 Fair

3 3.4 Dissatisfied

2 3.4 Very Dissatisfied

1 0 Not effective at all

27
Majority of the teachers rated it 6 and 5, which could be interpreted that so far, the Tax

Reform Law has yet to fulfill its functionality. Meaning, the purpose of why TRAIN was

administered, has not yet felt by the teachers.

The teachers were asked where do they think the Tax Reform Law lacks at, as shown

below in Figure 7.

Figure 7

30% of the teachers thinks that the law lacks at the price changes, mainly because of the

sudden price hike at some food products and transportation. While 28% feels that the law

lacks at increasing the scope of the tax exempted products or services.

28
Figures 8 and 9 show how much the teachers can save from their income before and after

the tax reform law.

Figure 8

29
 Figure 9

The data clearly show that the teachers who can save 2000- 5000 pesos decreased

from 16% to 8% and the teachers who can only save less than 100 increased from 4% to

8% which means that some teachers savings has dropped. On the other hand, the teachers

who can save up to more than 5000 increased from 4% to 6% which means that there are

also teachers who benefited from Personal Income Tax Exemption.

30
 Figure 10

In Figure 10, the teachers were asked where they benefit most from the VAT exempted

products/services, and majority of them chose Education and Medicines for diabetes,

cholesterol & hypertension. Which suggests that the government should focus on the

following areas mentioned.

Views of the teachers on the Tax Reform Law

Discusses the views and opinions of the teachers regarding the Tax Reform Law. They

were asked about what areas do they think that the Tax Reform Law has helped the

teachers, in which tax increased products do they agree with, what they think about the

31
law solving social classes problems and whether they agree on the tax reform law and

their opinions/suggestion on it.

Figure 11

Figure 11 shows the thoughts of the teachers regarding the areas where the tax reform

law can help the teachers. 58% percent of them thinks that the tax reform law can greatly

help the teachers in terms of budgeting. In retrospects, the teachers before and after the

enforcement of the Tax Reform law can either spend less money (especially on the junk

food) and save more money or spend more money and save less. Which proves that our

expenses varies directly to the way we handle our money or simply, budgeting.

32
Figure 12 shows the response of the teachers on the tax increased products.

Figure 12

Tax Increased products that the teachers are okay with

Soft Drinks
14%
Caffeine

42%
Petroleum
22%

Soy sauce, Fish Sauce, and

Vinegar
Canned goods
10%

2% Vehicles
8%
30% Make-up

23 out of 50 teachers agree to the increased tax on soft drinks that means that they agree

to the increased tax of the junk food, and only 1 out of 50 agrees to the increasing of tax

to soy sauce, fish sauce, and vinegar, primarily because of soy sauce, fish sauce, and

vinegar being an integral part of Filipino culture.

In chart 13, the teachers were asked whether they agree, strongly agree, disagree, or

strongly disagree to whether the law can solve problems between social classes.

Figure 13

33
Only one is very sure that the Tax Reform Law can solve the problem between social

classes which was being indifferent of the higher class and the lower class to each other.

But at least 30% of them agrees.

Figure 14

34
Figure 14 shows how many teachers agree on the Tax Reform Law. And 46% of them

agrees with it and there’s at least 9 teachers who doesn’t agree with it.

35
 CHAPTER 5

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

This final chapter consists of a summary of findings, conclusion, and

recommendations. The summary repeats in few details of the major findings. Conclusion

explores implications of findings. It is the opinion formed after considering relevant facts

from the findings. Recommendation is based on the strength of findings and provides

suggestions for further research into the chosen topic.

Summary of Findings

Having undergone through exhaustive research, it can be stated that the majority of

the teachers agree to the implementation of the Tax Reform Law. Most of them think that

the law can only do very little in improving the people’s lives. The Tax Reform law also

caused the majority of the teachers to spend more money for food and transportation and

there has been a decrease with the amount of money the teachers can save from their

income. Forty-six percent of the teachers spends the most on soft drinks and fifty-eight

percent says that the tax reform law has helped them the most when it comes to budgeting.

The researchers had chosen the teachers for they are the group of people that are directly

affected by the Tax Reform Law. In this study, the researchers will raise people’s

awareness on the both negative and positive effects of the Tax Reform Law to the teachers

of Woodridge College.

The various surveys carried out and results obtained shows that most of the teachers

of Woodridge College are in favour with the implementation of the Tax Reform Law.

36
Based on the tabulated results, most of the teachers knew the Tax Reform Law from the

news and their social media. That’s why the teachers have distinctive views on it.

37
Conclusion

Based on the findings of the study, the researchers therefore conclude that the Tax

Reform Law can only maximize its full potential if the tax of the necessities, like

transportation and food, are not increased. Also, the Tax Reform Law does not have that

much impact to the teachers lives, as some teachers have said that they have not really felt

the effects of tax reform law and could live pretty much the same with or without the law.

The Teachers also would like it better if the range of the personal income tax exemption is

expanded or increased. Based on the findings, the Tax Reform Law teaches and helps the

teachers in budgeting and making wise decisions.

38
Recommendations

Based on the foregoing findings and conclusions, the following recommendation was

given:

1. The research developed in this study may be integrated in the executive meetings

of the school teachers or faculty for further enhancement of decision-making in

coping up with the newly implemented Tax Reform Law.

2. The questionnaire used in this study can be administered to the public school

teachers and School administrators as an initial approach towards evaluation of their

level of relationship with the Tax Reform Law.

3. The developed study should be tried out in order to measure its effectiveness and

identify the areas which need further improvement.

4. The researchers may incorporate interviews to further add more data for accurate

results.

5. The researchers may conduct the study after one (1) year of the implementation of

the TRAIN Law.

6. The study may further include more respondents or focus on other group of people

affected by the TRAIN Law through including other group of employees in the

study.

39
 REFERENCES

Unknown (2018).Duterte: Teachers to get hike after cops, soldiers. ABS-CBN News.

Retrieved on February 6, 2018 from:http://news.abs-

cbn.com/news/12/29/16/duterte-teachers-to-get-pay-hike-after-cops-soldiers

Unknown (2018). VAT Exemptions Under New Philippine Law. Pinoymoneytalk.

Retrieved on February 6, 2018

from:https://www.pinoymoneytalk.cUom/products-exempted-from-vat-tax-

reform/

Unknown(January 16, 2018). What is the Tax Reform Program. Retrieved on

January 28, 2018 from http://www.apastyle.org/learn/faqs/web-page-no-

author.aspx

Unknown(26, January 2018). TAX REFORM: HOW YOUR INCREASE IN TAKE-

HOME PAY CAN BE INVESTED. Retrieved on February 5, 2018, from

https://www.bpi-philam.com/en/bancassurance/finance-and-insurance/tax-reform-

how-your-increase-in-take-home-pay-can-be-

BIR. Value Added Tax. Retrieved on February 6, 2018 from

https://www.bir.gov.ph/index.php/tax-information/value-added-tax.html

Boncan, C.(n.d). Taxation and Public Spending in Spanish Colonial Philippines.

Retrieved on February 2, 2018 from http://pha-kasaysayan.com/wp-

content/uploads/2016/09/taxation-spanish-colonial-phils-boncan-2016.pdf

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Dela Paz, C.(2018). EXPLAINER: How the tax reform law affects Filipino

consumers. Retrieved on February 7, 2018 from

https://www.rappler.com/newsbreak/iq/193170-train-tax-reform-law-effects-

filipino-consumers-workers

Gialogo, E.(2018). Train law: What does it change? Retrieved on February 3, 2018

from https://www.rappler.com/thought-leaders/192873-train-tax-reform-law-

what-does-it-change-explainer

Investopedia.(2017) Taxes. Retrieved on February 6, 2018 from

https://www.investopedia.com/terms/i/incometax.asp

Santos, R. (2014). Why do we pay taxes? Retrieved on February 7, 2018 from

https://www.rappler.com/business/economy-watch/52464-why-do-we-pay-taxes

Umil, A.(January 16, 2018). Salary increases for soldiers, police, but not for

teachers, government employees. Retrieved on March 12, 2018 from

http://bulatlat.com/main/2018/01/16/salary-increases-soldiers-police-not-teachers-

government-employees/

Cellona, J. (January 9, 2018). Duterte wants to increase teachers’ pay. Retrieved on

March 12, 2018 from http://news.abs-cbn.com/news/01/09/18/duterte-wants-to-

increase-teachers-pay

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Unknown(July 3, 2017). Yes, teachers are underpaid, even ‘underappreciated’.

Retrieved on March 12, 2018 from http://opinion.inquirer.net/105290/yes-

teachers-underpaid-even-underappreciated

Cabico (January 5, 2018). What's the new net take-home pay of teachers in 2018?.

Retrieved on March 12, 2018 from http://news.abs-

cbn.com/business/01/05/18/whats-the-new-net-take-home-pay-of-teachers-in-

2018

Unknown(February 26, 2018). What’s in the approved TRAIN Tax Reform of

2018?. Retrieved on March 12, 2018 from

https://www.pinoymoneytalk.com/philippine-tax-reform-list-of-new-taxes/

Espina, M. (February 20, 2018). Public school teachers demand pay hike; rally set.

Retrieved on March 12, 2018 from http://www.sunstar.com.ph/bacolod/local-

news/2018/02/20/public-school-teachers-demand-pay-hike-rally-set-589859

Merriam & Tisdell (June 5, 2015). Qualitative Research: A Guide to Design and

Implementation. Retrieved on March 25, 2018 from

https://books.google.com.ph/books?hl=en&lr=&id=JFN_BwAAQBAJ&oi=fnd&

pg=PA137&dq=qualitative+research&ots=wNYQQO3Cc0&sig=SkNLOK5_vW

77M9ittw9O43csCl8&redir_esc=y#v=onepage&q=qualitative%20research&f=fal

se

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Babbie, Earl R.(2018). The Practice of Social Research. 12th ed. Belmont, CA:

Wadsworth Cengage. Retrieved on March 25, 2018 from

http://libguides.usc.edu/writingguide/quantitative

Orines, F., Mercado, J., Suzara, J., & Manalo, C.(2012). Next Century Mathematics.

Quezon city: Phoenix Publishing house.

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 APPENDIX A

Certification of Grammarian

This is to certify that the undersigned has reviewed and went through all the pages

of the proposed project research entitled “The Effects of Tax Reform Law and the Views

of the Teachers on it” by Denise Areza, Gabriel Adih Abergos, Apple Ybañez, Tanya

Quilang, and Stephanie Piedad, aligned with the structural rules that govern the

composition of sentences, phrases and words in English Language.

Reviewed By:

44
 APPENDIX B

List of all teachers in Woodridge College

45
 APPENDIX C

Survey Questionnaire

Name (optional):____________________________

Subject taught: _____________________________

Good day! We are students from Grade 10- Trustworthy, conducting a research about the

Effects of Tax Reform Law and the Views of the Teachers on it. Your honesty in

answering the following questions will be much respected and be rest assured that your

answers will be treated with utmost confidentiality.

Directions: Check the corresponding circles below.

1. On a scale of 1 to 10, one being the lowest and ten being the highest, How well

aware of you of the tax reform law? ________

2. How did you know about the tax reform law?

(Check as many as possible)

○ News ○ Social Media ○ Articles ○ From your peers

○Please specify: __________

3. In what areas can the Tax Reform Law help the teachers?

○ In budgeting ○ Afford quality health care services

○ In paying bills ○ Please specify: __________

46
4. On a scale of 1 to 10, one being the lowest and ten being the highest, how effective is

the Tax reform law in terms of improving the everyday lives of the teachers?________

5. Check the following areas in which you think the tax reform law lacks at:

○ Personal income tax ○ Tax exemption

○ Price ○ Please specify: __________

6. How much do you spend for your food and transportation in a week, before the Tax

reform law?

○ Less than 100 ○ 200-1000 ○ 2000-5000 ○ more than 5000

7. How much do you spend for your food and transportation in a week, after the Tax

reform law?

○ Less than 100 ○ 200-1000 ○ 2000-5000 ○ more than 5000

8. How many dependents do you have?

○1 ○2-4 ○5+ ○none

9. How much money can you save from your income before the tax reform law?

○ Less than 100 ○ 200-1000 ○ 2000-5000 ○ more than 5000

47
10. How much money do you think can you save from your tax exempted income in a

week?

○ Less than 100 ○ 200-1000 ○ 2000-5000 ○ more than 5000

11. Which of the following tax increased products are you okay with?

○ Soft drinks ○ Canned good

○ Caffeine ○ Vehicles

○ Petroleum ○ Make-up

○ Soy sauce, Fish sauce, and Vinegar

12. Which of the following VAT exempted products, groups, or service do you benefit

from?

○ Rentals and leases below P15000 per month

○ Medicines for diabetes, cholesterol & hypertension

○ Education

○ Persons with disability

○ Socialized housing, or houses priced at P450000 and below, and low cost housing or

those priced at P3 million and below.

13. Do you agree that the tax reform law can solve the problem between Social Classes?

○ I strongly agree ○ I agree ○ I disagree ○ I strongly disagree

14. Do you agree with the implementation of the Tax reform Law? Why or why not?

48