The proposed taxes on the tax free zone will cause a huge loss of jobs for Costa Rica. Costa Rica thinks that companies will stand for new taxes while forgetting that these companies are controlled by stockholders. Stockholders will do whatever needs to be done to protect their investments and their profits.
Those taxes, utility costs come out of their profits/pockets. They did not invest in Intel or any other business to help Costa Ricans and their problems. Costa Rica will make a mistake in thinking that the business can’t afford to move their multimillion dollar investment in Costa Rica. They are wrong. Intel and others not only will look at the increase in costs/loss of profits but how much another country will offer them to move in tax savings, utilities, etc.
If and that is not a little “if”, they decide to move, Costa Rica won’t be able to stop them. Those companies won’t tell Costa Rica that they are thinking about moving, They will build their new buildings in whatever country has struck a deal with them, and when it is set up and running they will shut down their operations in Costa Rica and will be gone in a few days. Those businesses have figured out just how long they needed to operate in the buildings they put here to reduce the cost to zero and they figure that into their profits.
When the proposed taxes/utilities costs equal the cost of a new building and the move they will be gone, and others will follow. The tax free zone will be tax free again as there will be no businesses there to tax. This is not an opinion, it is a fact. It has happened elsewhere and will happen here.
Ask the folks what happened in the United States about what happened to their jobs there when the cost went too high. That is how Costa Rica got them to come here in the first place. Need I say more????
Wake up Costa Rica or lose big time, and I don’t think you can afford it.