Hoy newspaper writes today about how the middle class in the Dominican Republic, who own and operate small and medium-sized business, has a tough time here. The newspaper observes that big business benefits from special regulations that provide generous tax exemptions. But smaller businesses that have to deal with the present tax and social security structures have to face the reality that the conditions that are favorable for development and growth are available only for big business and not for them.
“We have here the “sandwich” effect where on the social scale they are not poor nor rich and thus have no influence. The fiscal exemptions and other support to investors have been created for big capital investments (often from foreigners) in the areas of mining, energy, tourism, free trade zones, select technological innovation firms, and construction of mega works.
As a result, many businesses are crammed into an unproductive financial space like “sardines” and are pushed towards bankruptcy or into the informal business sector.