Although officially the IDB "does not advocate a tax burden or specific tax policy," one of its officials warmly supports the project to increase the tax burden to support the Costa Rican economy, to the point of suggesting that the tax burden be similar to Argentina’s.
An article by Mary Anastasia O'Grady of The Wall Street Journal recalls Alexis De Tocqueville's warning that democracy can only survive up to the point at which "politicians realize they can bribe people with their own money", noting that now these politicians contend with the "poisonous influence of multilateral institutions such as the current Inter-American Development Bank (IDB)."
O'Grady points out how "the gap in education and health previously observed between Costa Rica and the rest of the region is disappearing and the Tocqueville effect seems to be at the heart of the problem."
"Chinchilla’s party is rubbing its hands at the prospect of new revenue and the IDB is feeding the frenzy. In September $609,000 was approved for a project that, according to information on its website, will 'support' the 'implementation of the proposed tax reform’. The agency says that the way they will spend the money has not yet been made public information."
"De Tocqueville saw the danger in all this: 'The history of liberty is a history of limitation of government power, not its increase.' But even he could not have anticipated this government excess stimulated by the IDB."
Source: Mary Anastasia O'Grady
More on this topic
April 2011
An international bureaucrat, whose salary is exempt from paying taxes, is one of the main supporters of tax increases in Costa Rica.
Alberto Barreix, tax expert from the Inter-American Development Bank (IDB), boasts that he has supported more than 50 tax rises in various countries.
December 2009
A $40.5 million loan will prevent deterioration of fiscal situation due to the global recession.
The Inter-American Development Bank approved a $40.5 million loan to that will provide budget support for Nicaragua and help finance measures that will increase revenue collection and efficiency and transparency of budget execution.
December 2010
The IDB loan will support the implementation and framework of a modern fiscal policy based on international practices.
The IDB loan will support the implementation and framework of a modern fiscal policy based on international practices.
Panama will reform its tax laws and improve public management expenditures with a loan of U.S. $ 200 million approved by the Inter-American Development Bank (IDB).
September 2011
The items to be introduced are: global income, world income, and municipal taxation on dividends distributed to companies operating in free zones.
The Chinchilla administration has agreed to make changes to its tax package in order to gain the support of the main opposition party for approval.
español
1895
