Module IV: Social, Economic, and Political Issues in Philippine History PDF

1 LEARNING OBJECTIVES Course Learning Outcomes Module Learning Outcomes Topic Learning Outcome 5. Demon...

1 LEARNING OBJECTIVES Course Learning Outcomes Module Learning Outcomes Topic Learning Outcome 5. Demonstrate the ability to use 1. Examine the social, economic, and political issues of our country Analysed present- primary sources to argue in favour through selected topics in Philippine history, particularly; day issues or against a particular issue; 1.1. Discuss the importance of constitution in our nation, concerning the 6. Effectively communicate, using as well as evaluate the significant features and social topics various techniques and genres, provisions embedded in our country‘s constitutions; discussed. In their historical analysis of a particular, they 1.2. Explain, in caricature, the nature and purpose of our particular event or issue that have accomplished could help others understand the taxation system; and a particular chosen topic; and 1.3. Trace, discuss, and evaluate at least three particular question in each 7. Propose recommendation/ agrarian reform program of country. issue that required solutions to present-day problems 2. Recognize that our nation‘s contemporary problems are the them to present based on their understanding of consequences of past events; and their stand, root causes and their anticipation 3. Propose recommendations or solutions to our country‘s argument, and of future scenarios. solutions. present-day problems using history. INTRODUCTION You made it! With that, I‘m welcoming you to the next chapter of your journey on becoming a critical thinker. In this portion, you are going to need all of the skills that you acquired from our previous lessons such as tracing, analysing, and evaluating the past through history. You will need these skills as we scrutinize selected social, economic, and political issues, the mandated topics on constitution, taxation system, and agrarian reform in particular, in our country. I hope that through this, you will be able to propose and advocate recommendations or solutions to the present-day problems of our country by understanding its root causes. ENGAGE YOURSELF! Before we finally proceed to the lesson proper, I want to ask you some questions that will guide you as you digest important details from discussion. You can answer these on your mind or write it on a piece of paper, so you can get assess whether your preliminary knowledge are correct or needed correcting. 1. Why is the 1987 Constitution important to our society? 2. Do you find the TRAIN Law, or the newest tax system in the country, better than the system it replaced? Why? 3. Do you consider the Comprehensive Agrarian Reform Program, after two decades of implementation, a success? Why or why not? TABLE OF CONTENTS Title Pages Recommended Time Allotment Objectives, Introduction, and Engage Yourself 1 10 Minutes The Development of the Philippine Constitution… 2 – 15 2 Hours and 10 Minutes The Taxation System in the Philippines 16 – 22 2 Hours The Perpetual Agrarian Struggle in the Philippines 22 – 28 2 Hours Summary of the Lessons (Let us Look Back!) 28 10 Minutes Pledge of Honesty, Module Activities, and Scoring Guides 29 – 31 3 Hours and 38 Minutes TOTAL HOURS 10 Hours and 8 Minutes Property of Mr. Jairo Hernandez Osorio, LPT Module in Readings in Philippine History Philippine State College of Aeronautics  2 IT’S TIME TO IGNITE THE FUN! The Development of the Philippine Constitution: Reflection of the Filipino Nation You probably always hear or see a furious Senator Miriam Defensor-Santiago declare: ―The constitution is always and always supreme‖ whenever her colleagues in court or senate hearings would present arguments or rationales that she deemed unconstitutional. Let us translate this into a question: ―How important is a constitution that legislators, like her, maintain its sacredness?‖ As a simple background, a constitution refers to a written document which contains the rules of a nation or state. It holds, in In the photo: Sen. Miriam Defensor-Santiago (1945- particular, the fundamental principles and laws of a land that guarantee 2016) in one of the senate sessions. She was a known people‘s rights through the determined powers and duties of the champion of the Philippine Constitution in the government. In particular, a constitution has the following purposes: contemporary times. 1. Determines the kind of government that will exist in the state; 2. Institutes government departments or agencies and establish their respective functions and duties; 3. Acts as the ‗supreme law of the land‘ as it holds the fixed and basic principles of the nation; and 4. Promotes and safeguards the rights of the people through the government. The 1987 Constitution provided three methods of amending the constitution: Constituent Assembly, Constitutional Assembly, and People‘s Initiative – required to be ratified by a majority vote in a national referendum. If we will trace, our country has framed a total of seven constitutions since 1897. But, we only successfully used three of them to govern our nation: the 1935, 1973, and 1987. Noteworthy, the other constitutions were significant pieces of evidence manifesting our struggles to break free from the bondage of colonialism. 1897: Biak-na-Bato Republic Constitution As early as March 1897, a revolutionary government, with Gen. Aguinaldo as president, had already been established at the Tejeros, San Francisco de Malabon. It happened when Gen. Aguinaldo consolidated the active forces against Spain in other provinces. However, by the end of May 1897, the remaining liberated towns of Cavite were retaken by the Spanish forces. The lack of ammunition and decline in morale, among many, due to the execution of the Bonifacio brothers were traced as valid reasons. For example, on May 10, 1987, the same day when the Bonifacio brothers were executed, the Spanish Navy bombarded the coast of Cavite and taken the revolutionary foothold at Maragondon. The circumstance forced Gen. Aguinaldo and his In the photo: The Casa Hacienda de Tejeros at Rosario, Cavite, was the biggest friar house of the recollects in our country before. troops to retreat north until they reached Biak-na-Bato at San In March 22, 1897, the Tejeros Convention was held here wherein Miguel de Mayumo, Bulacan, west of the Cordillera Mountains, the first ever national election in our history happened with Gen. on the 24th of June. While the fact that Spain regained Cavite Aguinaldo as the proclaimed president as Supremo Bonifacio‘s win was accurate, their failure to capture Gen. Aguinaldo and the was not accepted by some of the assembly‘s members. Property of Mr. Jairo Hernandez Osorio, LPT Module in Readings in Philippine History Philippine State College of Aeronautics  3 other principal leaders of our revolution remained. Our troops‘ successful retreat to Bulacan proved that the Spain‘s control of the countryside has already weakened by the latter parts of the 19th century. This was also seen in the widespread support of Filipinos to the guerilla warfare which made it impossible for the regime, even with the help of voluntarios locales mostly from Central and Northern Luzon, to gain victory. From there, Gen. Aguinaldo headed, among other activities, the promulgation of the Biak-na-Bato Constitution and the establishment of a rebel government. The move gained the support of 52 revolutionary leaders who convened in Biak-na- Bato. They adopted Isabelo Artacho‘s ‗Constitucion Provisional de la Republica de Filipinas‘ on November 1 and 2, 1897. Said work was co-written by another Filipino lawyer, Felix Ferrer. The constitution they both wrote was inspired, as they adopted the In the photo: A shrine built at the Biak-na-Bato National Park, provisions stipulated from, by the constitution written in San Miguel, Bulacan. Jimaguayu, Cuba. It was originally written in Spanish, and later on, translated into Tagalog. They day after the Biak-na-Bato Constitution was signed, the assembly elected the officials of the supreme council. On November 2, 1897, President Aguinaldo communicated to his cousin, Baldomero Aguinaldo. He wrote: ―The assembly of Representatives of the Philippines convened at Biak-na-Bato, in its meetings held on the first and second days of this month, has resolved to put into force the provisions of the recently proclaimed Constitution to abolish the present Departmental and Regional System of Government. A Supreme Council of Government has been organized In the photo: The Filipino negotiators of the Pact of Biak-na- instead as follows: Bato. The ones seated, from left to right, were: Pedro A. Paterno and Gen. Emilio F. Aguinaldo. While the ones standing 1. President, Emilio Aguinaldo at the back, from left to right were: Tomas Mascardo, Celis, 2. Vice President, Mariano Trias Jose Ignacio Paua, Antonio Montenegro, and Mariano Llanera. 3. Secretary of the Interior, Isabelo Artacho The peace pact would be signed in Malacañang on November 4. Secretary of Foreign Affairs, Antonio Montenegro 18, 1897 with Paterno representing Aguinaldo, although he 5. Secretary of Treasury, Baldomero Aguinaldo previously represented Spain in the negotiations. 6. Secretary of War, Emilio Riego de Dios‖ In light, the Biak-na-Bato Constitution is considered as the first constitution of our country with a republican type of government. Despite being a ―copied constitution,‖ it was unique based on its own merits. In the preamble, the separation of our country from Spain and our formation of a separate state were clearly stipulated as our revolution‘s objectives. In addition, the established organs under it were: the Supreme Council which held the power of the republic and composed of the president, and four department secretaries; the Consejo de Gracia y Justicia which was authorized to formulate decisions, affirm or disprove sentences rendered by other courts, as well as dictate administration rules of justice; and lastly the Asamblea de Representantes that was supposed to convene after the revolution to draft a new constitution and elect a new set of leaders. In particular, the Supreme Council had sweeping powers which included the power to issue orders and laws for the security of our country, impose and collect taxes, raise an army, ratify treaties, and convene an Assembly of Representatives. The constitution lasted for two years, in which at certain points, superseded by laws and decrees President Aguinaldo released. Hence, it was never fully implemented since the Pact of the Biak-na-Bato, a truce, Property of Mr. Jairo Hernandez Osorio, LPT Module in Readings in Philippine History Philippine State College of Aeronautics  4 was inked between Spain and the Philippine Revolutionary Army. It was peace pact, in which after series of discussions between both parties, stipulated the following terms: a ceasefire; the exile of President Aguinaldo and other revolutionary leaders in Hong Kong, and payment amounting to ₱ 800,000 to the revolutionaries. However, Spain was far from honouring the pact, as the governor general was just buying time to regroup forces and wait reinforcements from Spain. He knew that if they continue the war a little longer, they would be forced to surrender. Failing to anticipate this plan, on December 25, 1897, President Aguinaldo released a proclamation which declared the end of the revolution. He wrote: ―To the Maniolos (People of the Philippines) I lay down my arms because continuing the war will produce turmoil and evil, in place of happiness. This is not the end sought by the insurrection. I lay down my arms, because my expectations re at one with the lofty designs of the noble Governor General, His Excellency, Señor Don Fernando Primo de Rivera, Marques de Estela, who filled with love our dear country, inaugurated an era of peace from the time when he took up reins of government of this Spanish territory.‖ For more insights on what happened at Biak-na-Bato, watch ―Kasunduan sa Biak-na-Bato‖ at https://www.youtube.com/watch?v=m7h2CyUGHbE. 1899: Malolos Republic Constitution In adherence to the Pact of Biak-na-Bato, Gen. Aguinaldo and other revolutionary leaders went into exile in Hong Kong on December 24, 1897 eventually placing our armed struggle against Spain under hiatus. From there, they established a junta aimed to continue the revolution against Spain. When the Spanish-American War broke out in the middle of 1898, they returned to our country to resume the revolution. But before this happened, a mutiny within the group happened as Artacho demanded for the division of the ₱ 400,000, the first instalment, entrusted to Gen. Aguinaldo. The president refused. So Artacho filed suits against him and the banks where the funds were deposited. Gen. Aguinaldo, in response, avoided court hearings by going in Singapore. Accordingly, the second instalment amounting to ₱ 200,000 were already divided among the leaders, in which Artacho was already one of the recipients, left in Biak-na-Bato. As stated, Gen. Aguinaldo deposited the first instalment in two banks, subjected for withdrawal of ₱ 50,000 per quarter. He ruled that they would only use the interest earnings, total of ₱ 24,000 a year if no withdrawals were made, In the photo: 1899 Malolos Congress at the Barasoian Church, to defray their living expenses. In that sense, they would have digitally colored based on the descriptions on the written record funds, as he believed it was public money, for the purchase of of the event and the restoration of the church for the 1998 arms in case Spain failed to keep the pact. In the end, the suit Centennial. In the middle was President Emilio Aguinaldo seated as an individual on his left reads a document. was overtaken by the events of the Spanish-American War. In April 23, 1898, upon Gen. Aguinaldo‘s arrival in Singapore, he was persuaded to return home and fight Spain alongside the Americans. Then, he went back to Hong Kong where Rounseville Wildman, US Consul in Hong Kong, advised him to established dictatorial government that would eventually become a government patterned after the United States after the completion of the war. The Hong Kong Junta, furthermore, pushed him to return, resume the war and make its success certain. With the aid of Commodore Dewey, Gen. Aguinaldo and his men were home in May 19, 1898. They had with them the plan to revive the revolutionary government which became dormant due to the Pact of Biak-na-Bato. He carried with him a constitution drafted by Mariano Property of Mr. Jairo Hernandez Osorio, LPT Module in Readings in Philippine History Philippine State College of Aeronautics  5 Ponce in Hong Kong intended to establish a federal government in our country. However, Gen. Aguinaldo believed that if the war would resume, he needed to act without the interference of co-existing legislative and judicial bodies. Hence, in favor of the decree, drafted by Ambrosio Rianzares Bautista, he instead announced the establishment of a dictatorial government on May 24, 1898. Part of the decree stated: ―I accepted the agreement of peace…agreeing in consequence thereof to surrender our arms and disband our troops under my immediate command under certain conditions, as I believe it more advantageous for the country than to continue the insurrection, for which I had but limited resources, but as some of the said conditions were not complied with, some of the bands are discontented and have not surrendered their arms. Five months have elapsed without the inauguration of any of the reforms which I asked in order to place our country on a level with civilized peoples–for instance, our neighbor Japan…I see the impotence of the Spanish government to contend with certain elements which pose constant obstacles to the progress of the country itself and whose destructive influences have been one of the causes of the uprising of the masses, and as the great and powerful North American nation has offered its disinterested protection to secure liberty of this country, I again resume command of all troops in the struggle for the attainment of our lofty aspirations, inaugurating a dictatorial government to be administered by decrees promulgated under my sole responsibility with the advise of distinguished persons until the time when these In the photo: The altar of the church of Santa Cruz de Malabon, islands, being under our complete control, may form a now Tanza, Cavite, where Gen. Aguinaldo took his oath of office constitutional republican assembly and appoint a president as president of the revolutionary government in March 23, 1897, and cabinet, into whose hands I shall then resign command even before the Biak-na-Bato Constitution and the Malolos of the islands.‖ Constitution were promulgated. After a month, as advised by Apolinario Mabini, Gen. Aguinaldo decided to shift back from a dictatorial to a revolutionary government. As reflected on the revolutionary government‘s proclamation, they were ―to struggle for the independence of the Philippines, until all nations, including Spain, shall expressly recognize it, and to prepare the country for the establishment of a real republic.‖ During the short-lived dictatorial government, which was provisional in nature, he declared our independence on June 12, 1898 among other significant undertakings. In September 1898, he called the revolutionary leaders to convene to the Revolutionary Congress at Malolos. It was held in Bulacan as they could not convene in Manila since the Spaniards had the city surrendered to the Americans since August 13, 1898. They would soon realize that the Americans, whom they considered allies in May, were actually turning to become our new colonial masters replacing Spain. Therefore, it was but crucial for them to push the convening of the Revolutionary Congress, the ratification of our independence from Spain, and the formation of a constitutional republic. The revolutionary government also sent diplomatic notes to foreign nations informing them that our country had all the requisites of a modern nation: government, legislature, and an army. They supposed that this move, if other nations would recognize our country as an independent republic, In the photo: American soldiers burning the church‘s convent, could counter the plans of the United States to annex our nation. President. Aguinaldo‘s headquarters, in March 1899 as the Unfortunately, the request of formal recognition was denied by Philippine-American War broke out – almost two months when the other nations. the First Philippine Republic was inaugurated. Property of Mr. Jairo Hernandez Osorio, LPT Module in Readings in Philippine History Philippine State College of Aeronautics  6 In September 15, 1898, President Aguinaldo inaugurated the Malolos Congress. The inaugural ceremony was a very momentous and historic event based on the account of an American correspondent of the London Times and Harper‘s Weekly. He wrote: ―The date was at last…fixed for September 15th. A few days before Aguinaldo had made a triumphant entry into Malolos in carriage drawn by white horses, and there had been a general celebration of his arrival, with speeches, a gala dinner, open air concerts, and a military parade…We reached the station at Malolos in about an hour and a half…The town numbers about thirty or forty thousand people…From the first nipa shack to the great square where the convent stands thousands of insurgent flags fluttered from every window and every post…Every man had an insurgent tri-color cockade on his hat.‖ Indeed, the revolutionary government was at the peak of attaining its objectives. Gen. Aguinaldo, in that period, already gained total control of Luzon. Accordingly, his leadership was ―enthusiastically welcomed by practically all the towns in the Tagalog provinces.‖ In fact, most towns in Cavite, Laguna, Batangas, Bulacan, and Pampanga, as well as the suburbs in Intramuros, had been retaken by his forces in just a month after he returned from exile. The Spaniards, through offered counter-offensives, were defeated and easily captured in ―an almost farcically easy manner.‖ They were demoralized by the Guardia Civil‘s massive dissertation. Those in Batangas and Ilocos, for an instance had busied themselves debating on how In the photo: Some of the revolutionary fighters. they could effectively evacuate to Manila rather than offering resistance to our troops. In addition, complete government machinery in each province relating to matters such as justice, taxes, and police was successful established. He likewise managed to reassemble an army with some 30, 000 men, and earned the backing of the whole nation. However, the day after inauguration of the Malolos Congress, President McKinley directed his peace commissioners to prepare for the Paris Peace Conference and insisted on Spain‘s cession of Luzon to them. This preparation, of course, was at the back of the Malolos Congress‘ head. By November 29, 1898, the Malolos Congress approved its masterpiece – ―The Political Constitution.‖ In background, three constitutional draft proposals, written by Apolinario Mabini, Pedro Paterno, and Felipe Calderon, were presented before the Constitutional Draft Committee. Felipe Calderon‘s work, with the help of Joaquin Gonzales, was selected, printed, distributed, and In the photo: Gen. Aguinaldo arriving, in a carriage, for the inauguration of after which was debated starting October 21, 1898. the Malolos Republic. After rigorous scrutiny of its provisions, the members of the congress finalized its votes for the articles of the proposed constitution on November 29, 1898. They expected for the proposed constitution‘s early promulgation to supersede the signing of the Treaty of Paris, which occurred on December 10, 1898. In light, based on the Article 24 of the decree President Aguinaldo released on June 23, 1898, said constitution had no binding effect unless he ordered by promulgating it. This was an opportunity for him to transmit his proposed amendments, Property of Mr. Jairo Hernandez Osorio, LPT Module in Readings in Philippine History Philippine State College of Aeronautics  7 prepared by Mabini, to the congress. All of his amendments were adopted by the members, which were Christians, except for the establishment of a special system for non-Christian communities and hill tribes, and their representation to the legislature. After settling the compromises, the Malolos Constitution was finally promulgated on January 23, 1899, followed by the assembly members‘ oath to said constitution, and the proclamation of the republic and Gen. Aguinaldo as our president. It indicated that the congress had already shifted from a revolutionary body to a constitutional legislature, which was provided in one of the decrees President Aguinaldo released on May 24, 1889. In his speech during the promulgation, he stated: ―We are no longer insurgents; we are no longer revolutionists, that is to say armed men desirous of destroying and annihilating the enemy. We are from now on Republicans, that is to say, men of law, able to fraternize with all other nations, with mutual respect and affection.‖ The Malolos Constitution, like the Biak-na-Bato Constitution, was not an entirely original creation. In this regard, constitutional projects previously conducted before, such as: Emilio Jacinto‘s Kartilya and Sanggunian-Hukuman in 1896; Isabelo Artacho‘s Biak- na-Bato Constitution in 1897; Apolinario Mabini‘s Constitutional Program of the Philippine Republic, Mariano Ponce‘s Provisional Constitution, both in 1898; as well as Pedro Paterno‘s autonomy projects, had contributed and influenced the creation of the Malolos Constitution. Furthermore, the Committee on Constitution reported: "The work whose results the commission has the honor to present for the consideration of congress has been largely a matter of selection; in executing it not only has the French constitution been used, but also the constitutions of Belgium, Mexico, Brazil, Nicaragua, Costa Rica, and Guatemala, as we have considered those nations as most resembling the Filipino people." In the photo: In March 1929, Gen. Aguinaldo was reunited with some of the members of the Malolos Congress at the Despite its influences, the Malolos Constitution, importantly, Barasoian Church in Bulacan. should be viewed on how it came to be: centuries of Spanish rule and insurrections against its bad government; the American interference due to its assumption of power; and the gradually increasing sense of nationalism among our countrymen which developed into an ―ardent desire for independence.‖ Furthermore, it marked the beginning of constitutionalism, or the existence of a social system, in our country. It mandated that the power of the government is limited recognizing, above all, the rights of the people. The republic which the Malolos Constitution guided was short-lived due to the outbreak of the Philippine- American War in February 1899 and the capture of President Aguinaldo in Palanan, Isabela in March 1901. Nevertheless, the constitution, on its own unique merits, is hailed the first democratic constitution of our country and in the orient seas–promulgated in a holy place, the Barasoian Church. In the words of Teodoro Kalaw: ―In spite of the circumstances which then existed, when it seemed as if nothing could stand, when everything was tottering on its foundations, when the very secular institutions and all that most respected the past was threatened with death and destruction, it was yet possible to frame with serenity and rectitude a constitution which was logical, rigid, formal, alone in its class, a beautiful and imperishable document which constitutes, according to the Message of Aguinaldo, ' the most glorious token of the noble aspirations of the Philippine Revolution and an irrefutable proof before the civilized world of the culture and capacity of the Filipino people for self-government ", a constitution which established-one is forced to admit-in spite of its being provisional, the first democratic republic in the Orient, for even the Japanese constitution of the year 1889 cannot be compared favorably with the provisional Constitution of Malolos.‖ For more insight about the Malolos Constitution, watch Prof. Chua‘s discussion ―Paggunita sa Malolos Congress‖ at https://www.youtube.com/watch?v=K5Ti2J1HU9c. Property of Mr. Jairo Hernandez Osorio, LPT Module in Readings in Philippine History Philippine State College of Aeronautics  8 1935: Commonwealth Constitution Under the American occupation, organic acts were passed through the United States Congress to govern our country. The Philippine Organic Act of 1902 was first introduced which provided the establishment of the Philippine Assembly composed of Filipino citizens. Then several years later, the Philippine Autonomy Act of 1916 was passed which incorporated the first pledge of ―Philippine independence.‖ These two laws acted as the constitutions of our country from 1902 to 1935. In 1934, the Philippine Independence Act was passed which structured the parameters for the creation of our constitution. It mandated the Philippine Legislature to determine, though an election, the members of a Constitutional Convention who would draft a constitution for our country. The convention concluded their work on February 8, 1935 and submitted the Constitution to the president of the United States for certification on March 25, 1935, as per the Philippine Independence Act of 1934. Then our fellow countrymen ratified it through a national plebiscite that took place on May 14, 1935. It went full force and effect on November 15, 1935 with the inauguration of the Commonwealth of the Philippines. In background, the draft of the Commonwealth Constitution was finalized by the Committee on Sponsorship, which was narrowed from 87 members to seven by its chairman, Felimon Sotto. The six others in the sub- committee, including him, were Manuel Roxas, In the photo: In November 15, 1935, at the steps of the Legislative Building in Miguel Cuaderno, Vicente Singson Encarnacion, Manila, the Commonwealth of the Philippines was inaugurated with Manuel L. Norberto Romualdez, Manuel Briones, and Jose Quezon as its first president. Laurel. They were eventually called the ―seven wise men.‖ Together, they studied and reviewed the draft provisions proposed by the different committees of the convention until they arrived with the draft constitution. Accordingly, the draft was influenced by several documents, two of which were the constitutions during the revolutionary period: the Biak-na-Bato Constitution and Malolos Constitution. Others included: McKinley‘s Instructions to the Second Philippine Commission; the Cooper Act of 1902; and the Jones Law of 1916. They likewise lifted inspiration from the constitutions of the United States of America, Spain, Mexico, Italy, Poland, Germany, and some republics from the Latin America whose conditions resembled the situation of our country. As provided by Philippine Independence Act otherwise known as the Tydings-McDuffie Act, we were granted the right to administer our own government under the name ―Commonwealth of the Philippines‖ for a ten-year transitional period–after which the United States would grant us independence. This government, of course was governed by the 1935 Commonwealth Constitution. The constitution‘s nature, however, was criticized as some of its provisions were inconsistent with our goals of becoming independent. For an instance, as mandated by the Tydings-McDuffie Act, the constitution granted American citizens equal civil rights with Filipinos. It likewise recognized the right of the United States to control aspects such as our currency, coinage, trade, immigration, and foreign affairs. These provisions, as many of our countrymen perceived, hinder the United States to let go of its grip off our country. Indeed, the United States had cut short the progress we made during the promulgation of the Malolos Republic. However, our clamour to attain independence persisted – hence, the 1935 Commonwealth Constitution. Property of Mr. Jairo Hernandez Osorio, LPT Module in Readings in Philippine History Philippine State College of Aeronautics  9 1943: Japanese-Sponsored Constitution When the Japan occupied the country, the 1935 Constitution was abolished. In replacement, the Japanese-sponsored government established a Preparatory Committee for Philippine Independence to draft a new constitution. Under the close watch of the Japanese, the special body was composed of twenty Filipinos, mostly pre-war legislators or political leaders, including Jorge Vargas, Manuel Roxas, Benigno Aquino, Gen. Emilio Aguinaldo, and Jose Laurel. The drafting of the new constitution was initially realized on June 16, 1943 when Premier Hideki Tojo promised our country independence. The draft was approved on September 4, 1943 and ratified three days after. Afterwards, on September 20, 1943, the KALIBAPI elected the members of the National Assembly which voted Jose P. Laurel as president. In less than a month, on October 14, 1943, the Second Philippine Republic was inaugurated with Laurel as the president in front of the Legislative Building in Manila. In the photo: Jorge B. Vargas, Chairman of the The new constitution, in respect, had several provisions that were Philippine Executive Commission, reads a message to similar to the one it intended to replace. On the other hand, the the KALIBAPI in the Old Senate Session Hall, committee also incorporated noteworthy changes. For an instance, in Legislative Building, Manila. It was probably taken on terms of the people‘s rights, the 1943 Constitution had a striking September 20, 1943 during the election of the National Assembly members and soon-to-be-republic difference than the previous versions. Instead of accentuating on the president. people‘s privileges and rights, it emphasized on the people‘s duties and obligations in order to help the nation survive in times of emergency. Restrictions on several rights, such as but not limited to the liberty of abode, privacy of communications, and rights against arbitrary searches, were placed. In addition, no definition of national territory was stipulated in the said constitution. Incorporated also were stipulations which contradicted the constitution‘s nationalistic provisions in favor of the Japanese Military Administration. Furthermore, the National Assembly again became unicameral, in which half were elected members and the rest were composed of provincial governors and city mayors appointed by the president. It followed a process wherein the Association for Service to the New Philippines, prominently known as KALIBAPI, would select certain legislative members, then elect a president from among themselves. The president had no vice president and was granted greater powers. For an instance, the president had the power to enter into agreements with foreign country, particularly Japan, for the utilization of our natural resources and public utilities operation without the National Assembly‘s approval or consent. This set-up made it, which was not included in the 1935 Constitution, helped Japan to take advantage of our natural resources, transport operation, power, water, and other basic utilities through our president. In a report dated November 25, 1943, Karl Rankin, an In the photo: Then president-elect Jose P, Laurel during American Foreign Service Officer temporarily detailed at Manila, the inauguration of the Second Philippine Republic on described the state of governance in our country under Japan: October 14, 1943 ain front of the Legislative Building in Manila. He took an oath before Chief Justice Jose Yulo and some Tokyo officials, and signed the Philippine-Japanese ―Under Japanese military occupation the Philippine Islands have Pact. been governed very largely under the same laws and by much the Property of Mr. Jairo Hernandez Osorio, LPT Module in Readings in Philippine History Philippine State College of Aeronautics  10 same men as under the Commonwealth. There were two fundamental changes. The first was symbolized by the immediate conversion of the United States High Commissioner‘s residence into the official Headquarters of the Japanese Commander-in-Chief. The second was the abolition, at least temporarily, of the popularly elected legislature. Behind the scenes, of course, Japanese activities and influence affected all phases of Philippine life. But in a governmental sense the outward changes introduced were less striking than the very general continuance of old forms.‖ The Second Republic, which the 1943 Constitution guided, only lasted a year of effective life as Japan soon took over from October 1944 to August 1945 as war reached our country. The government-in-exile returned and was re-established in the country with Osmeña, the vice president, as the head of state following the death of Quezon on August 1, 1944 in the United States. Douglas McArthur, after the restoration of the commonwealth, issued a proclamation invalidating all the acts of the Philippine Executive Commission and the Second Republic. Hence, when our country attained liberation from the Japanese in 1945, the 1935 Constitution came back into effect. It was maintained until 1947 when an amendment through Commonwealth Act No. 733 was approved. 1973: Constitutional Authoritarianism The 1973 Constitution, significantly, used the first person ―we‖ in the preamble which signified that it was our sovereign decree, and was at our direct command. It was our land‘s supreme, written and ratified, which dictated the Marcos administration to constantly strive to satisfy the people‘s desire for an excellent system of law based on the four hallmarks of democracy: justice; peace; liberty; and equality. Furthermore, its provisions, as the objectives in the preamble declared, were based on: promoting the general welfare through the state‘s police power; the conservation and development of national patrimony; and the mandate that the government should practice equality of rights, opportunity, and treatment as they govern our nation. The movement to change the previous one, coined as the ―colonial constitution‖ crafted under American supervision, was pushed by a loose coalition of intellectuals, businessmen, and those inactive in politics, such as seminarians and activist nuns–who gathered the support of the masses through demonstrations and teach-ins. With continued efforts, they were able to reach the consensus for writing a new constitution. It culminated to the election, which happened on November 10, 1970, for the delegates of the 1971 Constitution. The progressives and liberals, later known as the potent bloc, dominated the convention with one-third of the seats taken by them. The remaining seats were occupied by the allies and sympathizers of the president. They would try to push for the In the photo: Marcos, who aspired for a re-election, in one of his presidential adoption of the parliamentary system of campaigns on 1969. government until 1972. Property of Mr. Jairo Hernandez Osorio, LPT Module in Readings in Philippine History Philippine State College of Aeronautics  11 Respectively, it was clear that President Marcos wanted to shift from a presidential type of government to a parliamentary system. He wanted to remain in power by earning a congressional seat and become the country‘s prime minister after his second term concludes. Barred from running for the third time, Marcos sought to change the governing system, the 1935 Constitution, which limited presidential tenure to two terms of eight years. In view, the president had seven key objectives to stay on power: control the military and police; control the Supreme Court; undermine the nation‘s faith in democracy; exploit and encourage lawlessness and instability; exaggerate the communist threat; gain the backing of the United States; and lastly, hijack the Constitutional Convention. In a relevant account about Marcos‘ plan to establish a constitutional authoritarianism, Primitivo Mijares, Marcos‘ ―prized media czar‖ and chief propagandist, wrote: ―The president himself did repeatedly explain to me that a martial law regime for the Philippines was virtually a lifetime ambition for him. He would talk about his youthful ambition to become a strongman rule during his spare hours… Then UP senior law student Marcos, according to his own account to me, wrote a legal thesis to comply with the requisites for graduation on the wisdom and necessity of a regime of ―constitutional authoritarianism‖ to husband the economic and political development of the Philippines. Although he harped on the theme of ―constitutional authoritarianism‖ in his thesis, Marcos recalled, what he actually had in mind as student was In the photo: Some of the audience, in panic, after a bomb exactly what he had established as a New Society…He wished then– exploded during the Liberal Party Political Rally on August 21, 1971 as he had realized with martial law–for a dictatorship with the at Plaza Miranda, Manila – famously known as the Plaza Miranda military kept subordinate to a civilian president calling all the shots.‖ Bombing. The Constitutional Convention approved the proposed constitution of November 29, 1972, and was signed the day after by the Convention President Diosdado Macapagal, Convention Secretary Jose Abueva, and other delegates. Afterwards, Citizen Assemblies were established, through Presidential Decree No. 86, in barrios, districts, and chartered cities in order for the people to ratify the constitution. By January 17 1973, President Marcos issued Proclamation No. 1102 which promulgated that the constitution proposed by the 1971 Constitutional Convention had been overwhelmingly ratified by the members of the Citizens‘ Assemblies and deemed effective starting that day. Noticeably, before the constitution‘s ratification, Marcos had placed the entire islands under Martial Law on September 21, 1972 through a provision provided in the 1935 Constitution: ―In case of invasion, insurrection or rebellion or imminent danger thereof where the public safety requires it…may suspend the privilege of the writ of habeas corpus or place the Philippines or any part thereof under Martial Law.‖ Accordingly, earlier in 1971 Gen. Manuel T. Yan, Armed Forces Chief of Staff, declared in an interview that the grounds for declaring Martial Law were non- existent. Nevertheless, the administration continued to strengthen their ground by asserting the legitimacy of their exaggerated and fabricated danger claims. The final In the photo: Senators Doy Laurel, Eva call was Juan Ponce Enrile‘s ambush which was staged, according to Enrile himself in Estrada, Ramon Mitra, Gerry Roxas, and 1986, to justify the declaration of Martial Law. In his diary dated September 22, Jovito Salonga outside the Senate 1972, President Marcos wrote: ―Sec. Juan Ponce Enrile was ambushed … It was a Session Hall – the upper chamber of the good thing he was riding in his security car as a protective measure… This makes the Philippine Congress. martial law proclamation a necessity.‖ Property of Mr. Jairo Hernandez Osorio, LPT Module in Readings in Philippine History Philippine State College of Aeronautics  12 In that period, until January 1973, he already dismantled his political opponents in congress which enabled him to assume both the law-making and execution powers–making constitutional authoritarianism a substitute for democracy as a form of governance. The day after the ratification of the 1973 Constitution, Marcos issued Proclamation No. 1104 which mandated the continuity of martial law in the islands. This proclamation, with Proclamation No. 1081, granted Marcos the power to ―reform the society‖ through presidential decrees, letters of instructions, letters of implementation, and general orders. Three days after, January 30, 1973, Josue Javellana filed a case against the ratification of the 1973 Constitution. Several cases with the same nature would also be filed before the Supreme Court. It was later on found out that the constitution had not been ratified accordingly, wherein voters in the plebiscite would cast their decisions on ballots. What the Marcos administration arranged was mere show of hands as they asked: ―Do you approve the new constitution? Do you still want a plebiscite to be called to ratify the new constitution?‖ However, the Supreme Court perceived that the people already accepted the new government, though reluctantly but not to the point of staging protest. Hence, the questions used in the Citizens‘ Assemblies were declared as political. In addition, they declared: ―There is no further judicial obstacle to the new constitution being considered in full force and effect.‖ By 1976, Marcos would amend said constitution to establish a one-man legislature. He would later ―fully-constitutionalized‖ his government through further amendments, as well as the promulgation of the Fourth Philippine Republic. Soon after, Filipinos would stage the People Power Revolution, which took place on February 22 to 25, 1986, and victoriously claimed our rights as the ―sovereign people‖ of our nation. This culminated to the abolishment of the 1973 Constitution, which Marcos utilized to exploit our country, and our civil rights most of all. If you have extra time, you can watch ―Batas Militar: Martial Law under President Ferdinand E. Marcos‖ at https://www.youtube.com/watch?v=be3wLiPUN9A. It shows life under President Marcos with rare actual footages of the period and statements from primary witnesses, and how the 1973 Constitution came to be. 1987: Freedom Constitution The sweeping events after the Marcos-manipulated 1986 Snap Elections, particularly the EDSA People Power Revolution, marked a monumental period in our nation‘s history. It ended the Fourth Republic and elevated to power the revolutionary government Corazon Aquino headed. It was, however, was provisionary as a new constitution would be installed marking the beginning of the Fifth Republic. Aquino‘s electoral victory and the revolutionary legitimacy surely worked hand in hand to make her ascendance to power valid. In February 25, 1986, Aquino took her oath as president at the Club Filipino in Mandaluyong. Marcos, on the very same day, asserted his win and also took an oath of office at Malacañang in a televised ceremony. In the photo: Constitutional Commission President The ―rebel soldiers‖ cut the telecast short, and the palace was besieged by Cecilia Muñoz handing the 1987 Constitution to hostile masses later on. To avoid the wrath of avenging masses, Marcos President Corazon C. Aquino. and his family had been flown out of Malacañang to a temporary sanctuary at Clark Air Force Base. He wanted to remain in the country and requested to fly them to his hometown, but Aquino refused to permit it. Hence, they were flown to Hawaii, ending the Marcos regime, where the bedridden and short of power dictator died. After taking her oath of office, President Aquino declared that her government would be revolutionary in nature which gave her dictatorial powers. By March 25, 1986, President Aquino promulgated the Freedom Constitution, which was essentially the ―1972 Constitution shorn of its Marcos-added provisions, a lean document consisting of the presidency, the courts, there rest of the bureaucracy… [which] operated as a transition charter.‖ Its significant points included: the adopted Bill of Rights from the 1973 Constitution; and the abolishment of the Property of Mr. Jairo Hernandez Osorio, LPT Module in Readings in Philippine History Philippine State College of Aeronautics  13 Batasang Pambansa, which in turn gave Aquino the legislative power until the new constitution was ratified through a plebiscite. The proclamation declared: ―The new government was installed through a direct exercise of the power of the Filipino people assisted by units of the New Armed Forces of the Philippines…The heroic action of the people was done in defiance of the 1973 Constitution…The direct mandate of the people as manifested by their extraordinary action demands the complete reorganization of the government.‖ During her stint as a dictator, through Aquilino Pimentel, government officials, particularly in the local government, had been reorganized–the provincial governors, municipal and city mayors, and other local officials. They had to dismantle the local officials‘ hold as they were remnants of the Marcos dictatorship. Hence, the interim constitution truly lacked democratic credentials, and chiefly a presidential device to eradicate the remaining Marcos influence across the islands. Since President Aquino had no clamour to remain a dictator, the provisional constitution, through the incorporated Bill of Rights, mandated her to assemble a Constitutional Commission within two months. Hence, on April 23, 1986, she issued Proclamation No. 9 which called for the convening of said commission. She then appointed 50 commissioners, from major geographical areas and significant social groups such as the peasantry, labor, women, and the Muslim minority, to draft the new charter in May 1986. These commissioners, in particular, were composed of thirty lawyers, twelve landowners, and several business executives. Four had ties with Marcos, a handful with Laurel, and the remaining few had links to the radical left. Nonetheless, in general, a great majority favoured Aquino. They elected Cecilia Muñoz Palma, a former Supreme Court Justice, as president and former senator Ambrosio Padilla as vice president. Rosario Cortes, a historian arrived with the commission‘s downside upon evaluating it: ―The Constitutional Commission of 1986 was, however, composed of mostly nationalists and oppositionist to Marcos dictatorship, and the constitution produced was filled with fifties-vintage national economic rhetoric and an idea of a government composed more as a reaction to a rejected dictatorship rather than as an instrument that would allow the nation to adequately confront the challenges of the future.‖ Generally, the commission adopted several provisions from the 1935 Constitution. For an instance, they included that there should be separation of powers among the three branches of the government with a system of checks and balances. Then, the legislature became bicameral–the Senate and the House of Representatives. Furthermore, the powers and prerogatives of the president were practically restored from what it used to be in the 1935 version. However, the power to declare martial law was greatly modified to avoid what Marcos did. They provided that the president would need the congress‘ approval to declare martial law with a limited time of two-months implementation. Other important provisions of the constitution were the: term limits for elected officials; and a judiciary appointed by the president as per the Bar Council‘s recommendation. It was stipulated that the judiciary appointees need not to undergo the confirmation of the Commission of Appointments unlike in the past constitutions. People empowerment was a concept likewise added to the constitution. It recognized the rights of practically all sectors of the society. Hence, a multi-party system was incorporated which provided voice for smaller organization, and a chance to be elected. The ―nuclear-free‖ Philippines was also enshrined which barred the United States from storing nuclear arms in our military bases–an initial victory for the anticipation of the Bases Agreement in 1991. In January 1987, the 1897 was ratified by the nation, and still continues to guide our nation unrevised. ―The document [1987 Constitution] that…emerged was pro-people, pro-God, pro-country, and pro-family. It was a detailed charter for two reasons: firstly there was very little time available. Secondly, there was a strongly felt census…‖ For more insights about our current constitution you can access ―Mga Nagbalangkas ng 1987 Constitution, Naglagay ng Safeguards‖ at https://www.youtube.com/watch?v=qroFR4jG8MM. Property of Mr. Jairo Hernandez Osorio, LPT Module in Readings in Philippine History Philippine State College of Aeronautics  14 Attempts to Change or Amend the 1987 Constitution In present, the 1987 Constitution frames the political system of our nation. In a popular opinion, the constitution was hastily formulated to fill the power vacuum left by Marcos before his political allies regroup and challenge Aquino‘s new order. With such manner of how the 1987 Constitution came to be, it contained ―inconsistencies and ambiguities as several major provisions were left for the legislature to specify.‖ This spurred continued debates to either change or amend said constitution even after its ratification in 1987. In light of the attempts to amend or change the 1987 Constitution, Rüland noted: ―…Institutions are not only treated as dependent, but also as independent variables, with the ability to change the behavior of political actors. Accordingly, institutionalists believe that political change is manageable and may be best attained through institutional engineering. Not surprisingly, therefore, charter change has been a persistent theme in the Philippines ever since the country‘s redemocratization following the ouster of…Marcos by a peaceful display of ―people‘s power‖ in February 1986. Since then the Philippines…has been struggling with democratic consolidation.‖ The table below exhibits some of the attempts to amend or change the 1987 Constitution. For more insights on how did these proposals transpire and failed, you can read Rappler‘s article ―Look Back: Past Charter Change Attempts and Why they Failed?‖ at https://rappler.com/newsbreak/past-attempts-charter-change- philippines-failed. Year Proposed Amendments and Charter Change Sponsor (Initiator) 1991 A constitutional draft providing a pure parliamentary Some Constitutional Scholars government was submitted. 1991 Establish a government based on parliamentary principles, House of Representatives and as the shift from presidential to a parliamentary 1993 government was endorsed twice. Another draft of constitution, ―rhetorically opted for a shift National Security Council to a parliamentary system‖ surfaced. 1995 Advocated for shift of government from presidential to Association for Government Reforms parliamentary. for Advancement (AGORA) 1997 Amendment to abolish the term limits of elected officials in People‘s Initiative for Reform. the 1987 Constitution. Modernization and Action 1999 The Constitutional Correction for Development was formed by President Estrada, which pushed for the lifting of the The Estrada Administration restrictions on foreign ownership of business in our country. President Arroyo established a Consultative Commission with economic liberalization and federalism as its core. Later on, according to commission‘s head, Jose Abueva: ―The president decided to push for only one amendment: to 2003 to change our presidential government with a bicameral The Arroyo Administration 2009 congress to a parliamentary government that would be unicameral. She dropped our proposal to change our unitary republic into a federal republic and to liberalize the nationalistic provisions on foreign participation in our economy.‖ The Sigaw ng Bayan conducted signature campaign to Filipino Citizens (through Sigaw ng propose changes in the 1987 Constitution. In the Congress Bayan) and the Congress there were several moves to convene for a Constitutional Assembly, and a Constitutional Convention as well. 2016 – The Duterte administration, with the Congress‘ backing, The Duterte Administration Present seeks to revise the entire 1987 Constitution to pave the way for a federal form of government. Property of Mr. Jairo Hernandez Osorio, LPT Module in Readings in Philippine History Philippine State College of Aeronautics  15 In the photo: Activists during the 5th anniversary of EDSA II, In the photo: Activists staging rally against Charter Change calling to oust GMA and to oppose her proposed Charter on January 15, 2018 at Quezon City, via ABS-CBN News. Change, among many cries, via Rappler. Waltzing to Federalism The 1987 Constitution bestows the central government an encompassing power to make decisions, policies, and programs for our nation. In a federal form of government, some of these powers will be cascaded to the local state governments, while others divided or shared between the central and local, through the proposed federal type of government. You can gain more insights from the following televised news:  ―Usaping #Pederalismo‖ at https://www.youtube.com/watch?v=c6Zr7yk8UX0.  ―Stand for Truth: Federalism 101‖ at https://www.youtube.com/watch?v=5-57hRT4a3w.  ―Stand for Truth: Federalism, Makakabuti Nga Ba?‖ at https://www.youtube.com/watch?v=VJ5cZIN6QOk.  ―Federalism, Balak Ipatupad ni Duterte sa Bansa‖ at https://www.youtube.com/watch?v=CC6wxRS1cuw.  ―Draft Federal Constitution‖ at https://www.youtube.com/watch?v=AcNfLsQdZtc. In the photo: The members of the Constitution Commission  ―Draft ng Panukalang Federal Charter, Inaprubahan‖ at in a huddle, via Pathricia Ann V. Roxas of The Inquirer. https://www.youtube.com/watch?v=iJJW6c4ON3U. In July 2018, the Constitutional Committee President Duterte personally established, composed of 22 veteran lawyers and experts submitted their federal constitution‘s draft. However, the House Committee on Constitutional Amendments approved and recommended the adoption of Arroyo‘s version ―Resolution of Both Houses No. 15‖ instead. It was heavily criticized by the Constitutional Committee and Filipinos as it left out crucial key provisions present in the first version such as the safeguards against political dynasties, turncoatism, and federated regions. In addition, other provisions like the removal of the vice president in the line of succession as well as the term limits for the senators and representatives, and the inclusion of the ―Bill of Duties‖ rather than Bill of Rights also underwent serious public scrutiny. The House Representatives had a swift reading process of the federal charter draft; however, the Senate declared that it would be ―dead on arrival‖ upon entering its halls. In June 2019, the president admitted that the proposed federal state would not transpire under his term, but he advocated for a charter change instead. ―Kaya it‘s not for me, in my generation, somebody else‘s. But you should change the constitution actually. Not for anything. If you do not want federalism, fine. But change the constitution that would really change this nation…‖ he proclaimed in an event at Malacañang. Property of Mr. Jairo Hernandez Osorio, LPT Module in Readings in Philippine History Philippine State College of Aeronautics  16 For more insights about this issue, you can access:  For the downsides of the proposed federalism, the article: ―Why we should not Dance to Duterte and Arroyo‘s Cha-Cha: Unpacking the Neoliberal and Authoritarian Agenda behind Federalism‖ at https://focusweb.org/why-we-should-not-dance-to-duterte-and-arroyos-cha-cha-unpacking-the- neoliberal-and-authoritarian-agenda-behind-federalism/.  For helpful infographics about the original version, the article at https://verafiles.org/articles/vera- files-fact-sheet-how-consultative-committee-pictures-fe with the title ―How the Consultative Committee pictures a Federal Republic of the Philippines.‖ The Taxation System in the Philippines Taxation is one of our state‘s inherent powers alongside the police power and eminent domain, which the Congress solely exercises. In general, taxation refers to the power in which the sovereign raises revenue to defray the government‘s expenses. In other words, its purpose is to raise money to support government programs and pay other public expenses. According to former Sen. Jovito Salonga: ―From the traditional standpoint, taxes are compulsory levies imposed by governments for the purpose of raising revenue. But under the relentless pressure of emergencies, depressions, and imbalances in wealth distribution, this traditional concept is giving In the photo: President Duterte signing the General way to the growing notion that taxation is a major instrument in Appropriations Act and Tax Reform Acceleration and Inclusion the shaping and making national economic policy.‖ Malacañan Palace on Dec. 19, 2017. Below are other important briefers about taxation: 1. Of the three inherent powers, taxation is of primary importance to our state. For, the power of taxation must be installed first before our government can effectively and permanently exercise the police power and eminent domain. Without this power, the government would cease to exist and so as the state. 2. The taxation power is inherent in sovereignty, and an inherent legislative power of state. 3. As per the Supreme Court ruling, the power of taxation is ―the strongest of all the powers of the government.‖ 4. Taxation is a political law, not civil, as it practically deals with our relationship to the government and not our relationship with one another. 5. Taxation‘s primary purpose is to raise revenue to defray government expenses. It likewise has secondary purpose which includes: to serve as a key instrument of social control; keep inflation in check; provide a more equitable wealth distribution among people; and attain economic and social stability. The Evolution of Philippine Taxation Under the Spanish Crown When Spain colonized our islands, a tribute system was levied upon our forefathers as their recognition of allegiance to the Spanish crown. These taxes were levied to them, pretentiously used for public purposes, to enrich the royal treasury. This system, in relation, was mottled by corruption and dishonesty of administrative Property of Mr. Jairo Hernandez Osorio, LPT Module in Readings in Philippine History Philippine State College of Aeronautics  17 officials whose appointments were political and compensation too small. In fact, some taxes collected failed to reach the public treasury. In light, the taxpayers had little knowledge, or at some point ignorant, of Spain‘s tax decrees. This could be perceived through the posted laws written in a language little understood by the population‘s greater mass. Furthermore, the colonial government itself was ignorant of the islands‘ conditions; hence several decrees were ―innocently proclaimed‖ which were not suited to the prevalent conditions of that times. As what expected of the any taxation system, the islands became a source of revenue for the Spanish crown through the following taxes: In the photo: ―The Arrival of the Spaniards‖ – a painting displayed at the St. Augustine Museum, 1. The direct taxes which were felt the most, and considered as Manila. a heavy burden to, by our forefathers – consisted of personal and income taxes. 1.1. The personal tax was comprised of the tribute, tithe, caja de comunidad, and sanctorium. In particular: the tribute collection which amount started with eight reales and eventually marked at fifteen reales at the end of the Spanish colonial rule in our country; one real for the tithe (theoretically paid by the residents regardless of class or nationality) and community fund; and sanctorium at three reales. In 1884, the poll tax or cedula personal, which amount varied from 1.50 to 35 pesos, replaced the honored tribute, tithes community fund, and sanctorium. This annual tax was paid by the residents of the islands, native or not, who had resided in the islands for at least a year. In the photo: Copy of cedula personal. 1.2. The income tax, introduced in 1878, such as the urbana tax was imposed on the annual rental value of urban real estates – buildings made of bricks, masonry, wood, or bamboo, with the exception of structures utilized for schools or charity works. 2. The indirect taxes included the customs duties on imports and exports – considered not remunerative to the Spanish treasury. 2.1. Under this division were the taxes on monopoly, such as in the monopolies of Tobacco, lotteries, playing cards (in which the collected tax aided the establishment of Intramuros), Opium, Cockpit or Gallera, Stamp Taxes, Papal Bulls, and others more like gunpowder, quicksilver, copper, cacao, dye stuffs, buyo and bonga, tuba, and salt. Under the Stripes and Stars When America subjugated our country, the Spanish revenue system was still in tacked – from, but not limited to, cedula personal, opium monopoly, lotteries, sale of documentary stamps, to other gambling activities. In fact, the taxes collected constituted roughly 20 million dollars annually to the public coffers in the initial period of the American colonization. Later on, the ―moralistic American proconsuls‖ would hinder gambling from its continued institutionalization, hence rejecting revenues from lotteries, cockfighting, and other more. They likewise reduced taxes on documentary stamps. These changes gradually continued until the established Spanish source of revenues In the photo: A cartoon depicting that the Philippines lost its significance. was just America‘s stepping stone to China. Property of Mr. Jairo Hernandez Osorio, LPT Module in Readings in Philippine History Philippine State College of Aeronautics  18 The following were other tax policies imposed by American colonial government to our country: 1. The Land Tax, which replaced urbana, was a tax levied on both urban and rural estates. 2. The Internal Revenue Law of 1904, implemented due to problems concerning land tax collection, stipulated ten major sources of revenue: (1) alcoholic beverages and tobacco firms licence taxes; (2) alcoholic beverages and tobacco products excise tax; (3) banks and bankers tax; (4) document stamp taxes; (5) cedula; (6) insurance and insurance companies taxes; (7) forest products taxes; (8) mining concessions; (9) business and manufacturing taxes; and (10) occupational licences. 3. In 1913, due the Underwood-Simmons Tariff Act, the export taxes on sugar, tobacco, copra, and hemp were lifted which reduced revenue. Such circumstance urged the colonial government to increase tax receipts; hence, imposed minor changes on the Internal Revenue Law – imposition of taxes on mines, petroleum products, and dealers of petroleum product and tobacco. 4. In the succeeding years, more tax policies would be introduced to raise revenue even more: (1) income tax in 1914; and (2) inheritance tax in 1919. In addition, a national lottery was likewise installed for the sake of increasing revenues. During the Commonwealth and Japanese Occupation In 1939, the Commonwealth Act No. 466 otherwise known as the National Internal Revenue Code, which you can access at https://www.officialgazette.gov.ph/1939/06/15/commonwealth-act-no-466, was introduced. It aimed to revise, amend and codify the internal revenue laws of our country during that period. In March 7, 1939, President Quezon, in a message about the revision and codification of tax laws stated: ―…I created a Tax Commission on August 23, 1938, composed of competent men representing not only the Executive and Legislative branches of the Government, but also private business. The Commission was instructed to effect a revision of the entire tax system, with a view to establishing an integrated and coordinated system which may be satisfactory as regards fiscal productivity, administrative feasibility, theoretical justice, and be better adapted to the political, economic and social conditions of the Philippines. I also asked the Commission to consider the need of promoting a sound and equitable redistribution of wealth. …For many years I have realized that the existing revenue laws of the Philippines needed revision, for the reason that since the first internal revenue law was enacted in the year 1904, no scientific study has been attempted to adjust them to our changing economic and social conditions. In fact, what we have today is a hodgepodge of various revenue acts enacted piecemeal by the lawmaking body without regard to the paying ability of the taxpayer or the effects of each tax upon the different economic classes of the nation. During the last decade economists and statesmen the world over have devoted much time to the study of the science of public finance; new concepts of justice in taxation have been evolved; new sources of revenue have been tapped; taxation has been given a new meaning and an additional social utility; notable improvements have been made in the machinery of collecting taxes; and many nations have endeavored to perfect their own system of balancing income and expenditures. In the Philippines, agriculture has made material progress; commerce and industry have been given impetus; the wealth and income of the nation have materially increased and their distribution has been altered; and a new political structure has been erected to meet our forthcoming responsibilities as a sovereign state. But our tax machinery has remained unchanged. It is out of line with modern economic concepts; it is not responsive to the expanding fiscal requirements of the Government; it fails to distribute the tax burden in proportion to the ability and resources of the different economic classes of the people; and its administrative features are not abreast with the standards set by progressive nations. Moreover, the present system of taxation is a source of a grave injustice. A cursory examination of our tax laws shows that a majority of the existing internal revenue taxes are paid by the consumer; hence, they weigh heavily upon the masses of the people and too lightly upon those better able to pay them. The measure recommended by the Tax Commission will remove this inequality…‖ The major changes introduced in the new tax system were: (1) installation of a single tax with a progressive rate which replaced the normal tax of three percent and the surtax on income; (2) reduction in Property of Mr. Jairo Hernandez Osorio, LPT Module in Readings in Philippine History Philippine State College of Aeronautics  19 personal exemptions; (3) a slight increase in the corporation income tax was implemented through the taxes levied on inherited estates or gifts donated in dead persons‘ names; (4) a single turnover tax of ten percent on luxuries was introduced in replacement of the cumulative sales tax; (5) a tax increase on liquors, cigarettes, forestry products, and mining; (6) and the dividends became taxable. Though the new tax code was an improved version of the system Americans introduced, it remained unjust. For an instance, the elites were able to maneuver the situation to benefit them more. They passed the heavy burden of taxation to the lower class, and some other sectors laden with disproportionate tax share. In relation to this, in June 15, 1939, President Quezon released a statement as he signed the new tax code: ―…It is my impression that most of the criticisms presented against the Tax Code were directed more to the manner and procedure of collection than to the respective taxes or their rates. The Bureau of Internal Revenue may be depended upon to enforce the provisions of the law in a manner that will be practicable and just, and if difficulties are encountered such as were predicted by some businessmen the matter could be remedied at the next session of the National Assembly.‖ When Japan occupied our country, the Japanese Military Administration retained the existing taxation system but withdrew articles concerning their armed forces. Since our country‘s important economic activities fell such as foreign trade, tax collection were sourced from amusements, manufacturers, professions, and business licences. In one particular instance, the Japanese Military Administration, through the Executive Commission, modified the Sales Tax Law embodied in the National Internal Revenue Code. Chairman Jorge Vargas stated: ―…The principal purposes of this executive order are to discourage the use of articles of luxury and to raise additional revenue necessary to meet the needs of the Central Administrative Organization. The executive order retains the principal features of the present Sales Tax Law, except that the rate of tax on articles of luxury; such as, high-priced automobiles, jewelry, and toilet preparations has been raised from 10 to 35 per cent of the gross selling price, exclusive of the tax. Similarly, the rate of tax on other articles better known as semi- luxuries; such as, low-priced automobiles, binoculars, beauty parlor equipment, musical instruments, household type refrigerators, and the like has been raised from 5 to 30 per cent… [It] is justifiable, especially at this time when it would be most unwise to indulge in any kind of luxury, the rate of tax on ordinary articles has not been increased. In fact the present exemptions in relation to sales of articles of prime necessity, especially foodstuffs, have not been disturbed. It is well that the principle of ability to pay be observed at all times, so that the tax burden may equitably be distributed among all classes of people. In this way, we shall also be able to protect the interests of the poor and the needy…‖ Post-War Taxation to 2016 After the war, Manila was razed to the ground while the rest of the islands remained untouched. However, our agricultural-based economy was highly disrupted. With the dragging post-war situation, our country needed the rehabilitation funds from the United States – which then seen by our former colonizer as an opportunity to advance their economic agenda. This condition obstructed the flow of revenue which would sustain the programs of our government. Accordingly, President Osmeña declared on his message to the Congress on September 6, 1945: ―…the people were in a state of chaos and confusion as a result of the enemy occupation of the country. Thus, the proposed measures [extension of payment period] are designed to In the photo: An aerial shot of a portion of Manila flunked by the war. favor taxpayers who have been prevented from Property of Mr. Jairo Hernandez Osorio, LPT Module in Readings in Philippine History Philippine State College of Aeronautics  20 complying with the requirements of the tax laws for reasons not attributable to their own fault or neglect, by allowing them to file their tax returns and to pay the taxes due thereon without penalties, within the period granted in the bill. It is reasonably expected that the measures will encourage the rendering and filing of belated notices, returns, statements and reports which otherwise internal revenue officials might or would have much difficulty in making taxpayers file.‖ In 1949, the dire economic situation worsened and our government experienced severe lack of funds in areas such as military and education. Given the circumstance, however, no tax improvement or revision in our tax system was made. In fact, as early as 1947, President Roxas stated on his speech regarding the national budget: ―For the moment, I am not recommending any new taxes. We will concentrate on the proper enforcement of our present tax laws.‖ When President Quirino took charge, economic improvement again became visible through a policy which allowed the expansion of viable manufacturing sectors. It then reduced our economic dependence on imports. During his time, new tax measures were passed including the higher corporate tax. In lieu of this, he stated: ―I do not intend to recommend new tax measures. I believe that the present revenue collections can still be increased, first, by further improvement and intensification of tax collection, and, second, by accelerating our economic development activities to increase the nation‘s taxable wealth. I recommend, however, that the effectivity of certain of our tax laws which will expire during the coming fiscal year be extended. The impairment, even temporarily, of the improving finances of the Government must be avoided. The income from the tax measures approved last year represents about thirty-five per centum (35%) of the total tax revenues.‖ The tax burden for the lower class remained until the administration of President Magsaysay, while the elites in the Congress continued to protect their self-interests–that taxes would not be levied to them. In addition, Magsaysay did not intend to increase or create new taxes, but advocated for the extension of existing tax laws like the presidents before him. In one of his messages, he stated: ―We do not intend to increase tax rates nor create new taxes. We merely propose to cover the increased expenditures by intensifying collection of existing taxes, and by maintaining our existing sources of revenue. We will see to it that every centavo that is due the government in taxes is collected. No portion of the tax should be lost to the government because of tax evasion or diversion to private channels. We expect in the near future to raise our income to about one billion pesos to meet all essential needs of the government for operating expenses, capital expenditures, and economic development… In my state-of-the-nation message to Congress, I recommended the extension of the tax laws which have expired or are due to expire this year in order not to impair the financial stability of the Government.‖ Under President Garcia, the Joint Legislative-Executive Tax Commission submitted their legislative plans to meet the need for additional revenue without increasing the average taxpayers‘ burden, and could provide push for rapid economic development. However, from 1959 to 1968, despite the favorable economic condition, the Congress did not pass any tax legislation. Within this period, indirect taxes contributed over three-fourths of our revenues. For an instance, President Macapagal declared in one of his speeches: ―…Over three-fourths of our taxes are still being raised through indirect taxes that are largely shifted on to the masses of our people who consume these goods, while only about one-fourth are borne by the profit-earner. We are therefore faced with a revenue system which has failed to remain consistent to the changing structure of the economy to the extent that it actually taxes more those who have benefited less from economic change while virtually absolving from any increase in the tax burden those who have profited more. This inequity in the structure of Philippine taxes is continuously being aggravated in the sense that the bulk of government efforts is allocated primarily to promote the growth of the income of the producer and industrialist. Public investments in power, highways and communications, irrigation systems—projects made possible by taxes— benefit directly the private investor, enabling him to produce more with greater efficiency and to distribute his goods more cheaply…‖ Property of Mr. Jairo Hernandez Osorio, LPT Module in Readings in Philippine History Philippine State College of Aeronautics  21 By the latter year of Marcos‘ first term, 1968, the tax collection remained poor and public funds were lost to massive corruption. Then, during the martial period our tax system remained regressive. When he lifted martial law in 1981 until his final days in office our revenues were still heavily dependent on indirect taxes – seventy percent of the total tax collection. With the successive economic contraction from 1984 to 1985 due to problems in the tax system, and others such as the effects of debts, and financial and political crises, President Aquino inherited a government drowned in a fiscal crisis. Hence, after the EDSA People Power successfully catapulted her to presidency, she reformed the tax system through the 1986 Tax Reform Program. ―We instituted tax reforms to shelter the poor from onerous taxes and equitably redistribute the tax burden,‖ she declared during her State of the Nation Address in 1897. Its primary objectives included: (1) the improvement our tax system‘s responsiveness; (2) promotion of equity among taxpayers; (3) promotion of growth through the withdrawal or modification of taxes that reduce incentives to work or produce; and (5) attain an improved tax administration through a simplified tax system and promotion of tax compliance. In July 25, 1987, President Aquino introduced Executive Order No. 273 which amended certain provisions of the National Internal Revenue Code to adopt a value-added tax system. In the order, it was stipulated that as part of the structural reforms in the 1986 Tax Reform Program, ―there is a need to rationalize the present system of taxing goods and services by imposing a multi-stage value-added tax to replace the tax on original and subsequent sales tax and percentage tax on certain services.‖ In 1998, the VAT Law was fully implemented, and eventually resulted to an increase in and revenue – from 10.7 percent in 1985 to 15.4 percent in 1992. Attributed to this milestone were administrative reforms which encouraged an intensified tax collection and audits, introduction of computers, and the gradual reduction of corruption. In 1997, President Ramos implemented the Comprehensive Tax Reform Program. It aimed to broaden the tax base, allow lower tax rates, and address the loopholes in the indirect tax system. His administration likewise broadened the scope of the VAT base through RA 7716. His successor, President Estrada, on the other hand failed to constitute any tax reform due to his short tenure. In 2001, another president was catapulted to power via people power, Gloria Arroyo. Her administration engaged in an increased government spending without adjusting the tax collections. This ignited large deficits from 2002 to 2004, which she later on realized as In the photo: The staging the EDSA People Power II in an unsustainable expenditure pattern. Hence, in 2005, her 2001 to ouster President Joseph Estrada. administration introduced RA 9337 of the Expanded Value-Added Tax. It expanded the VAT base to energy produ