10-10-10 taxes

Dolores1

DR1
May 3, 2000
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DR1 16 May 2007:
Ortega proposes a flat tax
Economist, negotiator and ambassador to Colombia Julio Ortega Tous has called for a simplification of the local tax structure and suggested a flat 10% tax on all imports, a 10% tax on incomes and a 10% VAT tax on everything, with no exclusions. This follows a similar proposal by US economist Victor Canto, who was one of late former President Ronald Reagan's economic advisors, and years ago by Frederic Emam Zade, today director of the Funglode think tank in Santo Domingo. Ortega Tous cited what is happening in the tobacco sector, where cigarette manufacturers are halting local production and importing product for the local market. "What is worse" according to Ortega, "is the risk of contraband and counterfeiting." Ortega used Ireland, a country that was one of the poorest in Europe 17 years ago, as his example. By simplifying the fiscal structure, Ireland has become a magnet for investors and is now one of the richest countries in Europe. In the past, income tax in Ireland could be as high as 76%, but today it is just 15%. Ortega pointed out that he was not looking to reduce the government's income levels but to simplify the system in order to guarantee current levels or even an increase of income. According to Ortega, the IMF does not see things the same way, and has not realized what has happened in the tobacco and alcoholic beverage sectors where the highest taxes have produced a decrease in collections.

Four years ago, in August 2003, Frederic Emam Zade had proposed:
http://dr1.com/news/2003/dnews082103.shtml#5
Emam Zade sees opportunity in crisis
Writing today in El Caribe, economist Frederic Emam Zade says that Dominicans can make the most of the present crisis if costs are minimized and benefits maximized. He explains that while it is too late to reverse the chaos of the past three years of unwise economic policies, some good may come of it. He mentions that the recent disorder has cut the value of the Dominican peso in half, ?but that effect has eclipsed the fact that the devaluation doubled the number of pesos per dollar and transferred RD$325 billion to two million Dominicans that have or generate dollars.? He says that this redistribution of wealth is the way the invisible hand of the market is guiding us so we can take advantage of the chaos.
He writes that a new government should instate a program to promote our exports, thereby exorcising the anti-exporter slant of our system, eliminating the distortions and differences between free zones and the rest of our economy, and turning the entire territory into one great free zone, with taxes charged to all, but at lower-than-present rates.
?We could apply a formula of 10-10-10,? he says, explaining that this would mean a 10% tax on net income of all companies and individuals without exception, 10% ITBIS on all goods and services without exception, and 10% on finished imported goods. To consolidate the relaunch of our exports of tourism services, we could discount 90% of the ITBIS for six months to all hotels, restaurants and suppliers of goods and services.
Emam Zade goes one step further, in saying that to really attract more remittances and lure back the capital and new investments, he would expel the traditional anti-capitalist devils and eliminate taxes on capital in the form of interests, dividends, capital gain, transfers between generations for inheritances and all donations.
Emam Zade even goes as far as to focus on the development of a true business stock exchange. He said to stimulate a true stock exchange, the new government could exonerate companies that sell more than 90% of their shares to at least 10,000 shareholders from paying income taxes for a non-renewable period of 10 years.
Emam Zade is the director for economic development of the Fundacion Global Democracia y Desarrollo, the think tank center under former President Leonel Fernandez.
 

Criss Colon

Platinum
Jan 2, 2002
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"FLAT TAX" A Great Idea Whose Time Will NEVER Come!!!!

"Flat" taxes have been suggested "all over the world"!
I like the idea!
Many economists support such plans. But "Governments" love to be able to "Tinker" with taxes to favor their political objectives,not to mention their personal bank accounts!
In the DR,"Tinkering" has,is,and will continue to be, the "Way We Do Things"! for years to come!
Some "liberals" feel strongly that a flat tax is to regresive. Meaning that the "poor" have to pay "10 %",and so do the "Rich"! They want the "Rich" to pay "more",and the poor to pay "less"!
I see very little hope for a "Flat Tax" in the DR,or "anywhere Else" for that matter!
Too Bad!"
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Chris

Gold
Oct 21, 2002
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I've always believed taxes are there for Governments to fiddle with. I like a flat tax - applied equally. But, I'm afraid we will never see it ever in the Dominican Republic.

Another island that we get to frequently is a zero tax jurisdiction. No company tax, no personal income tax, no property tax, no capital gains tax, no sales tax, no inheritance tax. The government makes their money on an across the board 33% import duty, expensive stamp fees on real estate and legal transactions, and some taxes on tourist type businesses. It works well.
 

cobraboy

Pro-Bono Demolition Hobbyist
Jul 24, 2004
40,964
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axes have less to do with paying for government, and more to do with buying votes and social engineering.

Progressive Income Tax is a cornerstone of the Marxist ideal.
 

DesiArnez6

New member
Aug 9, 2005
21
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Ugh ..flat tax, please no

axes have less to do with paying for government, and more to do with buying votes and social engineering.

Progressive Income Tax is a cornerstone of the Marxist ideal.

Indeedn it was Marxist, and a blessing to the creation of the middle class. I'd much rather pay taxes and recive the collective societal benefits of ambulance care, Adequate national health care, and increased infrasture, rather than just "fnd for myself". That was the beauty of Marxism as I learned it whemn in school there in the DR. It was fascinating and just made sense. Interestingly, I noticed a complete absence of Marxist theory in school when I came to the states. A shame, but I am not surprised as Marx has been so politicized in the US.

Second, as a citizen I believe that it is not only my moral duty to pay my dues to society through taxation, but that it is only fair since I reap the societal benefits, such as libraries school, electricity :p (that is , when its available), Seriously, I don't believe its taxation thats the problem, its where the money goes. There should be more scrutiny on where our tax funds dissappear to, as we pay MORE than enough in taxes to finance much better services than we receive in the DR. FLAT TAX, will just hurt the poor, and with gov spending/ corruption the way it is, it would have to be greater than 10-10-10 to succeed, we already have a 16% ITBIS tax on food, and 28% tax on phone service, I mean really, If you take away more taxes from the wealthy, what will the ITBIS have to be raised to ? 32%? Geez, Only what would REALLY happen is just more cuts to service, like no more free medical care, maybe co-pays or something. Probably just close down the state cafeterias and state suprmarkets, start charging the poor for electricity even i they only use two lighbulbs and no appliances, myabe raise tuition at the UAS so that the university charges market rates rather than just 7 pesos?! for credits. Ugh, I say LOWER the ITBIS, and make the wealthy and Business pay their fair (AND make Big business paty theri lights first)