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The paper measures the impact of RA 8424 (Tax Reform Act of 1997) on compensation income earners. The study reveals that the tax rate schedule of 5%-34% for individual income earners under the CTRP is less progressive than the previous 0%-35% tax rate schedule (compensation income) and that of 3%-30% (business income). These changes in the tax rates and the increase in personal and additional exemptions taken together will benefit all compensation income earners in terms of reduced tax burden.