Tax Reform proposal aims to reduce poverty and unemployment

Santo Domingo.- Patria Libre, a leading political organization, has presented a tax reform proposal aimed at reducing poverty and unemployment in the Dominican Republic. The proposal, authored by its president Fernando Abreu, seeks to reduce the Income Tax (ISR) for both individuals and companies to 15%, eliminate dividend taxes, and reduce the ITBIS from 18% to 12%.

The proposal also aims to eliminate taxes on assets, bank and check transfers, and donations and inheritances. Additionally, it seeks to reform public spending by eliminating unnecessary ministries and public institutions, resulting in a fiscal surplus after the first year.

The proponents argue that this is not a reduction in spending for the citizen, but rather an adjustment against the political class. They claim that by reducing political spending, they can reduce poverty and unemployment without affecting the social class of citizens.

The proposal is based on empirical evidence and scientific logic, which suggests that reducing taxes can lead to strong economic growth, increased employment, and improved quality of life. The aim is to reduce the privileges of the political class and ensure that the state is financed only for its natural and real role.

The reform proposes reducing the number of institutions and ministries, which will result in a fiscal surplus after the first year. Despite the fact that tax reforms with strong reductions in taxes often lead to increased collection, this proposal prioritizes fiscal sustainability and avoids eternal fiscal deficits.

The proposal has been reviewed and supported by renowned economists inside and outside of Patria Libre, including José Alfredo Guerrero, Co-Founder of the Fundación Economía y Desarrollo.