Economist Andy Dauhajre Jr?s tax proposals got a cold reception from most of the business community and the incoming authorities. According to Edwin Ruiz and Nicanor Leyba, reporters for El Caribe, the economist?s proposals were met with little enthusiasm from the PLD. Finance Minister Rafael Calderon told the paper that the submission of these ideas ? which entailed a cost of US$250,000 ? did not represent the government. Meanwhile, Daniel Toribio, a former finance minister for the PLD, said that his party?s economic team is against widening the tax base for the VAT, or ITBIS. CONEP similarly displayed disregarded the proposals in a press release by its president, Elena Viyella. The business leader said that at the summit held between President Mejia and President-elect Fernandez just two days ago, they had agreed on a proposed ?tax package which is not yet known to the business community, but which will be discussed and agreed upon.? CONEP went on the record to oppose one of the main points of Dauhajre?s tax package, namely the 1% increase in the anticipated tax payment on projected gross sales. In her speech before the American Chamber of Commerce luncheon last 16 June, Viyella said, ?The 1.5% can be maintained as a pre-payment, but in no way can it be resurrected as a minimum tax.? The proposals from Dauhajre advocate reinstating the 1.5% minimum tax pre-payments, an added 1% increase and their application to all businesses, no matter how large or small.
Viyella also said that the government has 175,000 employees too many, and that a reduction of the government payroll would contribute to better services, and would assist the government in bridging the RD$15-billion gap between projected income and what the IMF is expecting. Pavel Isa Contreras, an economist with the Center for Economic Research in the Caribbean (CIEC), spoke to reporters of the unfairness of Dauhajre?s proposals in that they would reduce the tax rate for the rich and cause the poor to spend more for their food.