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October 15, 2024
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Santana: Tax reform would involve big taxes

Santana: Reforma fiscal tocaría grandes impuestos

The economist Isidoro Santana considered yesterday that the tax reform project submitted to the National Congress will affect everyone, especially the middle class, because it affects all major taxes.

“That means it will affect the rich, the poor and the middle class. Possibly those who are most affected are those from the middle class,” he said.

He stated that the upper class will begin to pay for everything that they have stopped paying through incentive laws, at least gradually.

This tax reform touches everyone and the final impact is difficult to say immediately. Apparently it could affect the middle class and the poor more than the rich“, held.

He expressed that the Government has compensation mechanisms to neutralize the effect of the tax reform on the poor.

He considered that the way to carry out a regressive or progressive reform is through taxes, but through spending.

He stated that he would have liked a more far-reaching tax reform, because 1.5% of the gross domestic product (GDP), which the Government intends to collect, is not a big deal.

He stated that the Government submitted the tax reform proposal because it had the noose around its neck. He believes that the Government must rationalize spending and avoid corruption.

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