Economic consultant and politician Guillermo Caram urged the senators to give priority to the passage of a tax reform that stimulates the economy without levying more taxes that would only serve to curtail production activity. He writes in El Caribe newspaper today that the Dominican people have already paid a high price for the economic crisis that was caused by errors committed in the previous government in terms of heavy taxes and swelling inflation. The former governor of the Central Bank said that the Dominican people are counting on the Senate not to give precedence to the particular interests of powerful groups that back tax increases as long as their interests are not affected. He said that, instead, the tax reform should be integral so that it fairly distributes the burden. He hoped that the Senate would not fall prey to foreign interests that seek, among other things, to collect on loans that should never have been contracted, and that they would act only in the nation’s best interest. He writes that the Senate needs to act swiftly and take into consideration how national experience has shown the negative results will be forthcoming when a government begins increasing its spending and imposing more taxes. In his view, this juxtaposes the benefits won by administrations that begin with measures of austerity and stimulation of the economy and productive sectors by reducing taxes.
Lastly, Caram was critical of the latest Presidential appointments that seem to contradict President Fernandez’s austerity plan for the government, as proclaimed in his inaugural speech.