Dear Leonel
Sr. Presidente,
Wake up! This is a test of your ability to adjust to economic conditions and save the country's economy.
Typically, Dominican governments are ambivilous to the threshold point on taxes. That is to say, the point where higher tax rates cause the volume of business to decline to such an extent that the higher taxes actually result in lower government revenues. Well, we're at that point now in the airline industry which, last I checked, brought the tourists that are such a large part of the country's economy.
As in the US, the Dominican government is currently enjoying a windfall in fuel tax revenues. Since taxes are a percentage of sales rather than a fixed amount per gallon, the exponential increase in the price of fuel has resulted in an exponential increase in tax revenues. But, as you can see, that will not last. Accordingly, you can afford to reduce the tax percentage rate and, due to the greater sale price of fuel, still collect greater revenues.
Look, you know that Dominican government taxes are largely parasitic anyway -- given that such a large percentage of the revenues go to no-show jobs, bullsh_t non-starter projects, graft, etc., rather than to infrastructure or competitiveness (same as in the US, only more so). But any smart parasite knows that if you suck too much blood, the beast dies, and then you die too because there is nothing left to eat.
So please do all you can to make your government among the best in DR history. Make it a smart parasite. With all due respect, Sr. Presidente, think about it. But not for too long.
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