It could truly be a precious gift of love.

Conceived during the month of the heart and hopefully born during the merriest season of the year. 

And quantifiable, too.

But the best part is, everybody wins in the plan.

Freeing up a greater portion of workers’ bonuses from tax coverage would release a massive torrrent of cash into the system, boosting consumer demand, ringing up sales of merchandise and services, boosting business profits,  and enlarging taxable corporate incomes.

The end-result? A more vibrant and resilient economy.

And so we strongly endorse Sen. Ralph G. Recto’s proposal.

Recto said more government and private workers would enjoy higher tax-free bonuses and other benefits up to P60,000 to P72,000 once the P30,000 ceiling on tax-exempt benefits is increased.

“In the midst of soaring prices oil, commodities and utilities like power and water, the approval of this measure will give our workers something to look forward to at the end of 2012,” he said.

The former socio-economic planning secretary noted that the current P30,000 cap on tax-exempt bonuses as provided in the National Internal Revenue Code was outdated, denying state and private employees higher bonuses such as their 13th month pay.

Under the law, workers’ bonuses and benefits that are beyond P30,000 are automatically subject to tax. This means an employee receiving P40,000 bonus and benefits will have to pay income tax for the excess of P10,000.

But the Senate ways and means chairman said this should be adjusted to reflect current realities such as inflation and the consumer price index. Inflation is the upward movement in the prices of goods and services while CPI measures changes in the price level of consumer goods and services purchased by households.

He said adjusting upward the ceiling would just be fair since the CPI has risen by more than 200 percent since 1994 and also inflation.

“Over the years, inflation has eroded the purchasing power of our taxpayers and, thus, the ceiling on bonus that is exempt from tax is no longer responsive to actual realities,” he said during a hearing of his committee on the proposed measures.

Recto stressed the P30,000 ceiling was arrived at when the lowest monthly basic salary for employees with Salary Grade 1 was P2,800 and that of the President of the Philippines with Salary Grade 33 was P25,000.

Currently,  after a series of salary adjustments, Salary Grade 1 now receives P8,287 while salary Grade 33 is paid P107,470.

Citing figures presented by the National Economic and Development Authority, the lawmaker said the P30,000 ceiling is now practically worth P15,000  while the ceiling should be adjusted to as high as P57,000 due to inflation.

He proposed an increase from P60,000 to P72,000 in the ceiling, saying that the projected losses from such an  adjustment could be offset by new revenues to be realized with the rationalization of fiscal incentives, adjusting the sin tax rates, and even by proceeds from the estimated P120 billion coconut industry investment fund  parked in San Miguel Corp. that was recently awarded by the high court in favor of the government.

We can almost hear a loud applause from grateful workers.