The Impact of the Tax Reform for Acceleration and Inclusion Law to Middle Income Professionals in Metro Manila
Keywords:TRAIN Law, middle-income professionals, take-home pay, taxes, income tax
The purpose of this study is to assess the impact of Republic Act No. 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) Law to middle-income professionals in Metro Manila. The quantitative research method is used, and for determining the sample size of the population covered—the middle-income professionals in Metro Manila, the Cochran’s Formula is applied. The respondents are classified according to their profile in terms of their age, status, monthly income, level of position, and their monthly expenses before and after TRAIN Law, and then evaluated the effects of level of consumption, family size, socio-economic, and intrapersonal aspects in their lifestyles. The researchers used a self-administered survey questionnaire as an instrument to gather data. The study showed that when respondents are grouped according to age, consumption is the most significant aspect affected. Given that, the researchers recommend allotting a certain percentage of their take-home pay for the secondary needs. After setting aside the budget for basic needs, purchase consumer goods in bulk to save more money, and choose substitute goods which are cheaper without compromising the quality. Therefore, this study concludes that the implementation of TRAIN Law affects the way of living of the middle-income professionals that even if there is an increase in take-home pay, it has counterbalanced the rising prices of commodities. The respondents have a fair judgment only on the impact of TRAIN Law on their income.