Exploring the Impact of Tax Reform (TRAIN Law) on Financially-Struggling households: A Qualitative Analysis

Abstract

This qualitative research study looked into the effects of the Tax Reform for Acceleration and Inclusion (TRAIN) Act on families from the low-income class in Baguio City. An in-depth and semi-structured interview was conducted with twelve participants who were Cordilleran’s from poor income class families. Three themes were formulated after collecting the data: the impact on basic needs, such as the reduction of their budget for food and the payment for utilities and debts; the effect on mental and emotional well-being, such as anxiety, stress, and depression due to financial problems; and resulting poverty. It can be concluded that the low-income class families became poorer as a result of the implementation of the TRAIN law. The results show that the TRAIN law has a disproportionately negative impact on the poor, who must limit their spending on necessities like food in order to live, including paying debts and utilities bills. Additionally, it has an impact on a person's mental health and wellbeing by causing difficulties with anxiety, stress, and sadness. Therefore, it can be said that once TRAIN was implemented, low-income families become even poorer.