2000News

Higher taxes will bring more evasion, says deputy

Deputy Pelegrín Castillo Semán (PLD-Santo Domingo) expressed in an article published today his concern that the new tax bill may be the issuing of a blank check to the government. The congressman says that the majority PRD Senate legislated to increase its government’s revenues, far beyond compensating the expected decline in income that will result from the reduction in import tariffs. The reduction of tariffs is a necessary first step for the country to pass the free trade agreements signed with the Caribbean and Central America. Pelegrín alerts that only a handful of companies are prepared to export. "No society should consent handing in large amounts of resources to its governors without demanding a firm commitment with institutional reforms that result in quality application of public expenditures, as well as reduction of corruption, tax evasion and tax inequalities. We cannot hand them a blank check to the government, above all when it virtually has the control of all government powers and public organizations," he warned. "High taxes set by the laws tend to be nominal or illusory and foment the discretion, evasion and corruption, while low taxes tend to be real and effective. Experience shows that government collect more taxes with low or moderate taxes than with fiscal extremes," he said. He also criticized the congressional interest in passing an inheritance bill that will reduce the amount of taxes paid by the great fortunes of the nation.