How Much Is Your Vote Worth This Elections?

Magkano ba talaga ang halaga ng boto mo? Today let’s talk about the real value of your vote, the value of your democratic right. the The reason why we’re going ‘political’ today is because we’ve all heard people saying that every vote counts, it’s your democratic right, and every election people there is always a campaign to empower Filipinos to vote. But unfortunately, data from the previous elections show that only around 70% of Filipinos are voting. That means about 30% of Filipinos – that’s roughly 18 million people, not really giving a damn about the outcome of the elections. And I find that to be really really sad.

01 Voter Turnout

So in this article, I want to show you the value of your vote in monetary terms. And I promise you, you’ll be surprised at the actual value that goes with your vote.

Computing the Value of Your Vote

The monetary value of your vote is actually the amount of money you end up paying in taxes. Because that’s the amount of money you give to the government. And whoever is in office, actually gets a say on how that money is spent. Whether that goes into their own pockets, or is actually used for national progress… it’s in the hands of the people in government.

Therefore the value of your vote is equal to the amount you pay in taxes. So let’s compute for the total amount you actually pay in taxes.

There are two major kinds of tax that everyone of us pays for. First is income tax which ranges from 0-32% depending on your income. Then second is the 12% Value-added-tax (VAT) which we consumers pay for whenever we buy something with a receipt.

Now let’s say you are an employee with a gross income of P20,000 a month.

Using the tax estimator/calculator of BIR, the income taxes you are paying monthly should be in the vicinity of about P2,683 per month.

So income tax it’s P2683 per month.

Let’s go now to the VAT.

If your pay is P20,000 and the taxes withheld is P2,683…, less P931 for the SSS, Pag-ibig ang PhilHealth… then you have a take home pay of about P16,386.

 

Now, of course with your take home pay, you spend the money, and whenever you spend the money you also pay an extra 12% to VAT.

Now lets just assume that you spend all your take home pay, this means that the amount that goes into VAT is 12% of P16,386 which is an additional P1,966.

Okay there are already lots of numbers so let me recap.

  • With your gross income of P20,000 a month.
  • The taxes you pay for the income tax is P2,683 per month.
  • And when you spend, you indirectly pay an additional 12% VAT of P1,966 per month.
  • So in total, every month, the taxes you are paying, the money going to the hands of the officials you are about to elect, is P4,649 per month.

 

So does this mean you should sell your vote for P4,469?

Actually, no.

Because you vote once but the elected officials are in control of how they spend your money for the next 6 years! That means, the value of your vote in the coming elections is P4,761 x 12 months x 6 years! This is a total of .. and I hope you’re ready for this…. P321,768. That is the value of your vote!

 

My goodness.

You know what – when I computed for this number I was just really floored. Because in the past, I have been hearing of people selling their votes for just P500 or P1,000. Where in fact the value of their vote is 300x more than that!

What This Number Really Means

Now of course I am not suggesting that in the coming elections when someone tries to buy your vote, you price it at P321,000. Nor am I suggesting that you post your vote on buy and sell websites for P321,000. And please let’s not get obsessed and focused on the numbers or the thought that some people’s votes are worth more than others… it’s not a democracy if that’s the case, and things like that.

But the reason why I wanted to give you this monetary figure is so you really think about your vote as an investment.

Imagine that you have right now P321,000 – how much time and analysis and research will you spend before you actually choose your investment vehicle? I hope you’ll really give it some serious thought!

 

And that’s the way I want you to approach on who to vote for this coming elections – approach it like an investment. Because whoever wins this coming election will be your tax “fund manager”. They will be in charge of how your tax money is spent.

 

This is a call to be an informed voter (and investor)!

This coming elections, let us not just depend on the media, advertisements, or the slogans and tag-lines. Or rumors and gossip about candidates, or whoever is the most popular one. This is wrong way to invest (and also the wrong way to vote).

Instead, let us vote based on research about the candidates competence, past performance and credibility. Because that’s the right way to actually choose a company to invest in. You look at the fundamentals, you look at the intrinsic value of the options.

 

Your vote this coming elections is going to be the biggest investment you will make, over the next 6 years. You know that the value of your vote is worth more than several hundreds of thousands of pesos… So I encourage you to do your due diligence! Make your vote count, this coming elections.

P.S. I do not want this article to be about politics and who exactly who to vote. So let’s keep the comments section clean. Please do not promote or bad-mouth any candidates. Any comments with a political agenda will be deleted.

P.S. This article uses some references about investments. If you would like to learn about how to invest in the stock market, you can get access to a FREE online seminar over at www.StockMarketforPinoys.com

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