Comments on: Squeezing the turnip http://www.quezon.ph/2008/06/19/squeezing-the-turnip/ Punditry. Politics. History. Commentary. Sat, 04 Feb 2012 11:35:33 +0000 hourly 1 By: UP n student http://www.quezon.ph/2008/06/19/squeezing-the-turnip/comment-page-1/#comment-837026 UP n student Sat, 21 Jun 2008 04:10:07 +0000 http://www.quezon.ph/?p=1828#comment-837026 Interesting.. the blog-thread title is <i>squeezing the turnip. </i> If one does not want to feel the squeeze, one should leave the country. Interesting.. the blog-thread title is squeezing the turnip. If one does not want to feel the squeeze, one should leave the country.

]]> By: UP n student http://www.quezon.ph/2008/06/19/squeezing-the-turnip/comment-page-1/#comment-837021 UP n student Sat, 21 Jun 2008 04:08:58 +0000 http://www.quezon.ph/?p=1828#comment-837021 to d0d0ng: GMA and the cabal inside Congress agree with you in demonstrating the <i>famed Filipino <b>bayanihan spirit</b> </i> ---- that OCW-Filipinos who earn more than a million pesos a year should pay zero Pinas taxes while their fellow Pinoys working as a nurse or a teacher or a department-store clerk and earning half or even less (than the OCW) should pay taxes to Pinas. to d0d0ng: GMA and the cabal inside Congress agree with you in demonstrating the famed Filipino bayanihan spirit —- that OCW-Filipinos who earn more than a million pesos a year should pay zero Pinas taxes while their fellow Pinoys working as a nurse or a teacher or a department-store clerk and earning half or even less (than the OCW) should pay taxes to Pinas.

]]> By: KG http://www.quezon.ph/2008/06/19/squeezing-the-turnip/comment-page-1/#comment-836644 KG Fri, 20 Jun 2008 22:39:29 +0000 http://www.quezon.ph/?p=1828#comment-836644 Who says commenters /bloggers are not offering solutions, look again. It is like giving the emperor a robe to cover his naked body. Who says commenters /bloggers are not offering solutions, look again.

It is like giving the emperor a robe to cover his naked body.

]]> By: leytenian http://www.quezon.ph/2008/06/19/squeezing-the-turnip/comment-page-1/#comment-836608 leytenian Fri, 20 Jun 2008 22:03:41 +0000 http://www.quezon.ph/?p=1828#comment-836608 CVJ, here are market forces affecting small businesses to grow 1. rising energy prices 2. natural disaster 3. access to capital whether it is for agriculture or retail... 1 and 3 requires the active role of our government 2 requires savings and alert preparation. CVJ,

here are market forces affecting small businesses to grow
1. rising energy prices
2. natural disaster
3. access to capital
whether it is for agriculture or retail…
1 and 3 requires the active role of our government
2 requires savings and alert preparation.

]]> By: leytenian http://www.quezon.ph/2008/06/19/squeezing-the-turnip/comment-page-1/#comment-836569 leytenian Fri, 20 Jun 2008 21:34:10 +0000 http://www.quezon.ph/?p=1828#comment-836569 CVJ, yes i agree with you. with or without crisis, a back up plan must be there all the time. the new york time article was a good example. CVJ,

yes i agree with you. with or without crisis, a back up plan must be there all the time. the new york time article was a good example.

]]> By: d0d0ng http://www.quezon.ph/2008/06/19/squeezing-the-turnip/comment-page-1/#comment-836276 d0d0ng Fri, 20 Jun 2008 17:14:21 +0000 http://www.quezon.ph/?p=1828#comment-836276 UP n student on, " OCW’s (including those earning more than a million pesos a year) have no obligation to pay income tax to Pinas." It is just fair to pay income tax to the country which provide the earnings. OCW did not earn, including a million or more, from the Philippines. Hence, there is no sense of Philippines of imposing tax on earnings it did not provide. Second, the OCW/OFWs have keep this country afloat with foreign remittances with very strong contributions in the economy: 1. Local investment (houses, apartments, small businesses, schools, etc) and local spending stimulate jobs and domestic production. 2. Increase country's reserves and its ability to buy foreign oil. UP n student on, ” OCW’s (including those earning more than a million pesos a year) have no obligation to pay income tax to Pinas.”

It is just fair to pay income tax to the country which provide the earnings. OCW did not earn, including a million or more, from the Philippines. Hence, there is no sense of Philippines of imposing tax on earnings it did not provide.

Second, the OCW/OFWs have keep this country afloat with foreign remittances with very strong contributions in the economy:
1. Local investment (houses, apartments, small businesses, schools, etc) and local spending stimulate jobs and domestic production.
2. Increase country’s reserves and its ability to buy foreign oil.

]]> By: cvj http://www.quezon.ph/2008/06/19/squeezing-the-turnip/comment-page-1/#comment-836252 cvj Fri, 20 Jun 2008 16:45:07 +0000 http://www.quezon.ph/?p=1828#comment-836252 Leytenian, ok i stand corrected, what you described above is indeed not passive government. However, it still falls short of a relationship characterized by embedded autonomy between business and government needed to develop Industrial Policy. An example of the kind of involvement needed from government comes from a New York Times article back in August 24, 2004: <blockquote>Taiwan has traditionally grown and exported sugar, an industry that has recently fallen into hard times due to low international prices and other reasons. What should now be grown in the fields to replace the sugarcane that is the source of income for many farmers? In many countries, the result would have been a depressed rural sector, increasingly indebted farm households, and a drag on the economy. In Taiwan, the response has been a $65 million government investment program to develop a world-class orchid industry. The government pays for a genetics laboratory, quarantine site, shipping and packing areas, new roads, water and electrical hookups for privately-owned greenhouses, and an exposition hall—in fact everything except for the cost of the greenhouses. It also provides low-interest credit to farmers to help them build the greenhouses. - as quoted in Rodrik, Industrial Policy for the 21st Century</blockquote> The government must keep on doing the above even without a crisis because as another economist Robert Lucas wrote: <blockquote>A growth miracle sustained for a period of decades..must involve the continual introduction of new goods, not merely continued learning on a fixed set of goods - Robert Lucas, Making a Miracle in Lectures on Economic Growth</blockquote> UPn, your latest comment (at 8:57 pm) is more in sync with my view unlike the previous more limited role for government that you described in your earlier comment (at 7:02 am). Anyway, what distinguishes Marcos style crony capitalism with Korea Inc. is a relationship based on the actual performance of the business firm. This is what economist Alice Amsden calls a <i>reciprocal control mechanism</i> which i blogged about in the link below. www.cvjugo.blogspot.com/2007/04/amsdens-reciprocal-control-mechanism.html Leytenian, ok i stand corrected, what you described above is indeed not passive government. However, it still falls short of a relationship characterized by embedded autonomy between business and government needed to develop Industrial Policy. An example of the kind of involvement needed from government comes from a New York Times article back in August 24, 2004:

Taiwan has traditionally grown and exported sugar, an industry that has recently fallen into hard times due to low international prices and other reasons. What should now be grown in the fields to replace the sugarcane that is the source of income for many farmers? In many countries, the result would have been a depressed rural sector, increasingly indebted farm households, and a drag on the economy.

In Taiwan, the response has been a $65 million government investment program to develop a world-class orchid industry. The government pays for a genetics laboratory, quarantine site, shipping and packing areas, new roads, water and electrical hookups for privately-owned greenhouses, and an exposition hall—in fact everything except for the cost of the greenhouses. It also provides low-interest credit to farmers to help them build the greenhouses. – as quoted in Rodrik, Industrial Policy for the 21st Century

The government must keep on doing the above even without a crisis because as another economist Robert Lucas wrote:

A growth miracle sustained for a period of decades..must involve the continual introduction of new goods, not merely continued learning on a fixed set of goods – Robert Lucas, Making a Miracle in Lectures on Economic Growth

UPn, your latest comment (at 8:57 pm) is more in sync with my view unlike the previous more limited role for government that you described in your earlier comment (at 7:02 am).

Anyway, what distinguishes Marcos style crony capitalism with Korea Inc. is a relationship based on the actual performance of the business firm. This is what economist Alice Amsden calls a reciprocal control mechanism which i blogged about in the link below.

http://www.cvjugo.blogspot.com/2007/04/amsdens-reciprocal-control-mechanism.html

]]> By: UP n student http://www.quezon.ph/2008/06/19/squeezing-the-turnip/comment-page-1/#comment-836029 UP n student Fri, 20 Jun 2008 12:57:00 +0000 http://www.quezon.ph/?p=1828#comment-836029 to cvj: whether one wants it or not, the State participates in business activities and has a heavy hand in shaping the nation's economy. All that one has to do now is back to Marcos/Disini pursuing the nuclear-option for electricity generation as well as FVR signing many Build-Operate-Transfer contracts during the days of rolling blackout. You in Singapore as OCW is also direct result from active participation of the state --- a willful public policy, still continuing with the issue of the "English-as-a-medium-of-instruction". All that one has to do is think of VAT of today --- oppressive and regressive, you have noted ---- and think of it side-by-side with a willful decision to forego another source of taxes where current Pinas tax policy gifts the OCW population --- OCW's (including those earning more than a million pesos a year) have no obligation to pay income tax to Pinas. to cvj: whether one wants it or not, the State participates in business activities and has a heavy hand in shaping the nation’s economy. All that one has to do now is back to Marcos/Disini pursuing the nuclear-option for electricity generation as well as FVR signing many Build-Operate-Transfer contracts during the days of rolling blackout. You in Singapore as OCW is also direct result from active participation of the state — a willful public policy, still continuing with the issue of the “English-as-a-medium-of-instruction”. All that one has to do is think of VAT of today — oppressive and regressive, you have noted —- and think of it side-by-side with a willful decision to forego another source of taxes where current Pinas tax policy gifts the OCW population — OCW’s (including those earning more than a million pesos a year) have no obligation to pay income tax to Pinas.

]]> By: leytenian http://www.quezon.ph/2008/06/19/squeezing-the-turnip/comment-page-1/#comment-836015 leytenian Fri, 20 Jun 2008 12:31:36 +0000 http://www.quezon.ph/?p=1828#comment-836015 Scriptorium Says: "I suppose it’s something to examine on a case-to-case basis, depending on the stability of the market (including the credit environment), the level of productivity and consumption, etc" agree but that's a slow process to look at it. case by case is the job of an office according to market forces.. But looking at the whole Philippines, case by case will take us years to solve its case. Are you kidding me? Scriptorium Says:

“I suppose it’s something to examine on a case-to-case basis, depending on the stability of the market (including the credit environment), the level of productivity and consumption, etc”

agree but that’s a slow process to look at it. case by case is the job of an office according to market forces.. But looking at the whole Philippines, case by case will take us years to solve its case. Are you kidding me?

]]> By: leytenian http://www.quezon.ph/2008/06/19/squeezing-the-turnip/comment-page-1/#comment-835998 leytenian Fri, 20 Jun 2008 12:06:41 +0000 http://www.quezon.ph/?p=1828#comment-835998 if i receive data from IMF that do not match with my domestic reporting. as president... what can I do... this mismatch of information has been there already the first day Gloria sit in office. If I am given the job... I am obligated to turn these things around with a time frame. Or else I will be fired. Project management must always look on finance, the rest can be executed easily if money is abundant. No wonder the IMF are very hesistant to lower our debts interest and provide cushion in our favor. Debt Coalition said, it is very hard to mitigate and negotiate our terms because we don't have the credibility ( reputation) to practice according to the rules of Law. It does not exist. The brain of these leaders are only good for a sari sari store. if i receive data from IMF that do not match with my domestic reporting. as president… what can I do… this mismatch of information has been there already the first day Gloria sit in office. If I am given the job… I am obligated to turn these things around with a time frame. Or else I will be fired. Project management must always look on finance, the rest can be executed easily if money is abundant.
No wonder the IMF are very hesistant to lower our debts interest and provide cushion in our favor. Debt Coalition said, it is very hard to mitigate and negotiate our terms because we don’t have the credibility ( reputation) to practice according to the rules of Law. It does not exist. The brain of these leaders are only good for a sari sari store.

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