Eduardo Lora, a researcher at Harvard University and former chief economist of the Inter-American Development Bank (BID), told Deutsche Welle that the president’s economic project was connected to the social reality of Colombians.
However, he noted that Ivan Duque made a mistake because the tax reform “was neither socially nor politically set.”
Despite the reform has unleashed a political and social hurricane and it was one of the main causes of national strike, the economist pointed out in his interview with the international media that “It was a fairly well studied reform and quite progressive in its effects.”
He added that “the heaviest part of the proposal in terms of additional taxes fell – above all – on the upper class,” but that the 140 pages of the document were not read on the streets.
Iván Duque, without political maneuvering before the fall of the tax reform
In his dialogue with the international news network, Lora stated that “Duque no longer has political viability”, so it will have to make “a minimalist proposal” in order to save fiscal stability.
He explained that this alternative would not directly affect people’s pockets, so “Maybe they are looking for sales of public assets”, in addition to containing public spending.
“They are not going to do anything on the side of direct taxes on people and VAT, which are two potential great sources of income,” he said.
Finally, as Mayor Claudia López did recently, the economist said that criticizing a tax reform is very easy, “It is enough to say which groups are affected or comment that VAT is going to increase”, but proposing a solution is something else.