<p>In an effort to help improve the revenue performance of the national government, especially in the face of the country's current fiscal deficit situation, a number of proposals have been forwarded aimed at having a positive impact on revenues. One of these is the proposal to shift the present system of taxation to gross income taxation. This policy note argues that <span style="line-height:1.6em">the proposal to shift to gross income taxation is not likely to generate more revenues for the government. </span></p>