The economic thinkers are worried about the apparent dominance of fiscal interests surrounding the deliberations on the tax reform proposals that must be approved by the IMF. Mario Mendez, the economic editor for Hoy, points out that the proposal being worked out by the incoming PLD government team, working with an expert from the IMF and members of the current government, is in the fine-tuning stages. A source close to the goings-on reported that the IMF does not yet have a clear picture of the fiscal impact of the proposals, since they have been working with the taxes and have not yet addressed the area of public expenditures, a key factor in the overall fiscal impact. According to the same source, political responsibility for the reform will rest with the incoming government, but the economic officials of the current government are supplying the necessary information to draw up the plan. Central Bank Governor Jose Lois Malkum, Minister of Technical Affairs Carlos Despradel, and Finance Minister Rafael Calderon were in attendance for the incumbent PRD government at the most recent meeting. One source told Mendez that he was concerned because, so far, all efforts appeared to mirror what has happened in other countries in times of crisis ? the implementation of a tax plan that was solely focused on money. He insisted that the collateral economic implications be taken into consideration and that the reform not only be about tax collection, but also about reducing governmental expenses ? very similar to what CONEP has proposed. He pointed out that there were three likely possibilities concerning tax reform: one that focused solely on increasing taxes; another that focused on increasing some taxes and reducing public expenditures, and a third that would reduce taxes on the understanding that more revenue would be collected this way than with tax increases in a time of recession. The proponents of the latter idea, according to a source close to Mendez, say that a flat 10% tax on income, imports and sales would be a far better solution and would ultimately produce more money for the government. The VAT tax would exclude perhaps ten of the most basic food items.