Improving Tax Revenue by increasing Population of Employees and Establishments, Evidence in the Philippine Provinces
David Jose (a*)

a) De La Salle University, 2401 Taft Avenue, 0922 Manila, Philippines
*david.jose[at]dlsu.edu.ph

Abstract

Taxes are the blood of the government^s fiscal programs and administration, and it is by logic that taxes are derived from the labor of both the employers and employees in an economy. This quantitative causal exploratory study investigates the relationship between the population of employees and enterprises toward tax revenue and national debt. The analysis covers annual data from 2000-2021 across the Philippines^ 16 regions, yielding a comprehensive overview of regional dynamics- input data are stratified according to the size of the enterprise (which encompasses Micro, Small, Medium, and Large enterprises), and some statistical and economic transformation (such as per capita) were made to have a deeper inspection of the relation between variables. This study utilized multiple regression models via R programming. Findings show that the number of small and large enterprises and the population of their respective employees greatly affect tax revenue, which, in the long run, reduces fiscal deficits. With the growing national debt across the globe, the finding of this study is significant not only to the literature but across the globe as this paper provides an additional avenue to improve tax revenue and reduce the national debt. This research supports United Nation^s Sustainable Development Goal 12 (SDG 12).

Keywords: Macroeconomics- Active Populationl- Employees- Enterprise- Taxation- National Debt- Philippines

Topic: Taxation