Why Pay Taxes in a Broken System?

Why do we pay taxes?

Admit it, none of us wake up one day and think “What a great day to pay taxes!”

We don't celebrate when we see mandatory deductions from our payslip.

Yet, almost universally, we accept taxation as a necessary part of living in an organized society.

The real question isn't whether we should pay taxes, but why we choose to contribute to something larger than ourselves.

The answer lies not in laws or regulations, but in our shared vision of what society can be.

Understanding this deeper purpose transforms taxation from a burden into a powerful expression of our values.

What is a tax?

Taxes are the lifeblood of the government.

In my undergraduate days, the question of ‘what is a tax?’ is asked during our first introduction to taxation class.

The simple and straightforward answer would be that it’s a mandatory contribution imposed upon a person by the government.

If we were in my accounting class, I’d say you’re right.

However, this article seeks to dig into the deeper and more humanitarian implications of taxation.

On a more profound level, taxes are our collective investment in each other.

It's the mechanism through which we pool our resources to achieve what none of us could accomplish alone.

It’s how we convert individual resources to collective action to build schools, roads, bridges, pay teachers, fund hospitals, and many more services

In the Philippines, the tax system is governed by the Constitution, which mandates that “the rule of taxation shall be uniform and equitable” and that “Congress shall evolve a progressive system of taxation”.

Progressive meaning the more you have, the more you give.

While uniform and equitable relate to the ‘fairness’ of application of tax.

But beyond these technical definitions lies a deeper truth: taxes are the price we pay for a civilized society.

They represent our agreement to contribute to common goals and shared prosperity.

It's not about the government taking from citizens. It's about citizens working through government to achieve shared goals.

That’s how it should be, anyway.

Why are taxes necessary?

Without tax revenue, the public institutions we rely on would collapse.

Schools would close. Healthcare systems would falter. Infrastructure would deteriorate. National security would be compromised.

This is what happens when we forget the profound truth about taxation: it's not just about money changing hands.

It's about our collective belief in something bigger than ourselves.

The great paradox of taxes is that by giving, we actually receive.

We contribute individually so that we might benefit collectively.

This is how great societies are built.

The government doesn't just need taxes to function, taxes are the very mechanism that allows us to create the society we aspire to be.

When we implement excise taxes on tobacco, we're not just generating revenue—we're shaping behavior by making harmful choices more expensive.

When we create progressive tax brackets that ask more from those who have more, we're not just filling government budgets, we’re redistributing wealth.

When we provide tax exemptions for minimum wage earners or tax deductions for businesses serving discounts for seniors and persons with disabilities, we're not just adjusting spreadsheets, we're expressing our values through policy and protecting the most vulnerable in our society.

But perhaps the most powerful aspect of taxation is this: it creates possibilities that would otherwise remain dreams.

No single Filipino—not even the wealthiest among us—could build a national highway system connecting our islands.

No individual could establish a comprehensive healthcare program serving millions.

But together?

Together we can achieve what would be impossible alone.

Taxation, at its core, isn't about what we lose from our paychecks. It's about what we gain as a society. It's about the world we choose to build together.

The Catch

With everything I just laid out, all of it is idealistic and theoretical.

Theory is useless without application. And the Philippine use of taxes is haunted by the shadow of corruption.

Transparency International has consistently ranked the Philippines as one of the most corrupt countries in the world ranking 114 out of 180 countries worldwide.

This stagnation reflects a governance crisis where taxpayer pesos often vanish into corrupt systems, inflated projects, and private pockets.

The Philippines epitomizes dysfunction through its many corruption scandals. From the notorious Priority Development Assistance Fund (PDAF) scam—more commonly known as the Pork Barrel Scam— to questionable disbursements and fund practices through discretionary, and often confidential, funds.

Every peso stolen from tax revenues translates to underfunded hospitals, crumbling schools, and delayed infrastructure that will inevitably kill the very people paying for these developments.

While the BIR campaigns against tax evasion, citizens see little return on their investment.

When people don't trust that their contributions matter, they become reluctant participants. And who could blame them?

If you believed your money was being stolen rather than invested into uplifting the nation, wouldn't you hesitate to give more?

The Courage to Demand More

There's a kind of resigned cynicism that's tempting when confronting systemic problems.

"That's just how things are," (ganyan talaga)

"Nothing will ever change." (walang magbabago)

But history belongs to those who refuse this comfortable despair.

In the face of corruption, the answer isn't to withdraw our support from public institutions.

Rather, it's to transform them through our engaged citizenship and our democracy.

This requires a special kind of courage—not just to pay what we owe, but to demand that our contributions matter.

Not just to comply with laws, but to insist they serve their intended purpose.

Because like it or not, the only way for evil to thrive is for good people to do nothing.

And to do nothing is a choice.

It’s always a choice.

Conclusion

Taxes aren't just about funding government operations—they're about what kind of Philippines we want to build together.

Every peso collected is an investment in our collective future, in the schools that will educate our children, the roads that will connect our communities, and the social programs that will lift up the most vulnerable among us.

However, as citizens of a republic, it's our duty to ensure that those taxes are well-spent.

Our taxes reflect our values—our values, in turn, determine our future.

Should we not defend our values?

Or stated differently: Should we not defend our future?