This administration needs to learn the lessons that the U.S. voters put forth in the midterm elections. That is simply that you do not add taxes during these recessional times. It does not work to try to redistribute wealth without the citizenry revolting with their votes. With that in mind, I offer the following comments in regards to these taxes;
1. Solidarity (Luxury) Tax; Realizing that Costa Rica is “process oriented” not “result oriented” they managed to come up with the most convoluted process to assess the luxury tax on a few property payers with little results. I have yet to hear of one case where they have enforced the threat that those who didn’t pay would be tracked down and fined a 10 times penalty or any case where those that undervalued their property more than 10 percent would be fined five times the value. And now the time is approaching to pay up again if you are like me and paid the taxes, while my neighbors did not, knowing that Costa Rica never follows through on ANY enforcement.
How to get results: Repeal this stupid tax and replace it with a simple 5 percent surtax on ALL property owners. This would bring into the government coffers much more funds with much less confusion and much more adherence. TOO EASY? This should result in near 100 percent compliance.
2. Corporation Tax Proposed to “enhance security”: Another anti-business move, another added tax during a recession, another job-killer. At least the non-active corporations should be exempted as most homes fall into this class and no income is generated. Why should these corporations pay taxes on zero income. Something is wrong with this picture!
3. Value Added Tax being proposed: This is an excellent way to drive more of the poorer class of people further into poverty. I thought this administration was promising to narrow the gap? This would be a tremendous added cost of living to the people who now have trouble making ends meet and feeding their families. This is no time to add more taxes and add inflationary pressures to the people who live and work in Costa Rica.
I hope someone with some common sense can lobby for these legislators to apply some common sense for a change. Speaking of change, if they don’t do so, the electorate will do so at the next elections.
El Rodeo, Ciudad Colon