NewsWhore
05-02-2012, 03:30 PM
The Department of Taxes (DGII) continues to efficiently fulfill its role of collecting money for the government. The DGII reported that tax revenues were up 17% in March, or RD$2.7 billion, compared to March 2011. However, the DGII says that it fell short RD$2 billion to meet its budget for the month.
Taxes for March were RD$18.6 billion, with income taxes paid by companies and individuals up 28.9%, taxes on property 16.4%.
Meanwhile, economist Miguel Collado Di Franco warned of the negative impact of expansion of government spending propelled by the efficiency of tax collection. Presenting the results of research by the Regional Center for Sustainable Economic Strategies (CREES), Collado pointed to the burden of increased taxation and the growing public debt in the DR. He called for new decisions to be taken to limit the growth of public spending and said that public spending needs to be in line with economic development.
Collado said that the increase in spending has a high cost for tax payers and creates inefficiencies, as reported in Hoy. He said this translates into reduced economic growth. He said that growth needs to be focused on the welfare of citizens, and this is only achieved with productive investments in a free market economy.
To achieve economic growth he recommends "more private property, rule of the law and a free and decentralized price system that operates with economic incentives and less political decisions."
He referred to the much-commented study on Government Size and Implications for Economic Growth carried out by scholars Andreas Bergh and Magnus Henrekson. The broad-ranging paper showed that government size correlates inversely to growth in national economies. Bergh and Henrekson found a negative correlation between government size and economic growth. When government increases by 10%, annual growth decreases by up to one percentage point. The study found that tax cuts could force reductions in the size of government.
www.hoy.com.do/economia/2012/5/1/425630/Expansion-gasto-publico-perjudica-economia (http://www.hoy.com.do/economia/2012/5/1/425630/Expansion-gasto-publico-perjudica-economia)
More... (http://www.dr1.com/index.html#2)
Taxes for March were RD$18.6 billion, with income taxes paid by companies and individuals up 28.9%, taxes on property 16.4%.
Meanwhile, economist Miguel Collado Di Franco warned of the negative impact of expansion of government spending propelled by the efficiency of tax collection. Presenting the results of research by the Regional Center for Sustainable Economic Strategies (CREES), Collado pointed to the burden of increased taxation and the growing public debt in the DR. He called for new decisions to be taken to limit the growth of public spending and said that public spending needs to be in line with economic development.
Collado said that the increase in spending has a high cost for tax payers and creates inefficiencies, as reported in Hoy. He said this translates into reduced economic growth. He said that growth needs to be focused on the welfare of citizens, and this is only achieved with productive investments in a free market economy.
To achieve economic growth he recommends "more private property, rule of the law and a free and decentralized price system that operates with economic incentives and less political decisions."
He referred to the much-commented study on Government Size and Implications for Economic Growth carried out by scholars Andreas Bergh and Magnus Henrekson. The broad-ranging paper showed that government size correlates inversely to growth in national economies. Bergh and Henrekson found a negative correlation between government size and economic growth. When government increases by 10%, annual growth decreases by up to one percentage point. The study found that tax cuts could force reductions in the size of government.
www.hoy.com.do/economia/2012/5/1/425630/Expansion-gasto-publico-perjudica-economia (http://www.hoy.com.do/economia/2012/5/1/425630/Expansion-gasto-publico-perjudica-economia)
More... (http://www.dr1.com/index.html#2)