It is amazing how out of touch with reality this administration is. It is mind boggling how much they obviously want this country to be an absolute legal and financial pariah.
As if the taxes werent already cripplingly high
As if tax reform hasn’t been done enough already…so much even big 3 accountants cannot keep up.
I will summarize: Foreign Investors would be privileged with a 43% rate of taxation, but they can 'enjoy a generous" 35% if they are from a treaty country. This is like saying to someone on death row. Death penalty with shotgun to the face at 2 feet away or would you like to enjoy a pistol with a silencer to the dome from the back?
And for residents…
Wealth tax…of course
And the cherry on top
An Exit tax (just in case you thought you could merely leave to avoid the poop that they are dumping on this country)
It is not enough for an anthropomorphized chile to smear themselves with excrement…assuring noone will get within 100 feet of them except family members that pity them (also known as citizens and residents) no that wasnt enough. This person must also run through the world like a zombie desperately trying to fling some of the excrement on anyone who dares be in proximity…just to be sure everyone knows to stay away
It is exasperating to see articles like the above and others mindlessly exclaim that 75% of chileans pay little to no tax or that chile has lower taxes than the US. It is entirely false
Chile minimum wage is 380k a month. The monthly payroll/social tax rate on that is 24% with the employee portion nearly 20%
100% of employees in chile throw away nearly 20% every month of whatever they are paid…at a minimum.
That is nearly 3x higher than the USA for the employee portion and totality of it is still higher than the USA FICA/SECA
I understand now why chileans want AFP killed. It is outright oppression on the poor by those that have a historical and ongoing track record of abject incompetence. Then when they are already bruised and bloodied and stuck in poverty…when they deign to buy something…IVA is there to club another nearly 20% out of them.
Fatigue…jajaja. The wait till September 4 still seems like an eternity away and imagining 3+ years more of puppet Boric and his commie administration seems like a geologic epoch or two.
If Chile could do a tax reform that wasn’t just trying to squeeze water from a rock and scare away foreign investors and investment…it would be amazing
Try this on for size:
IVA eliminated on 100% of food related purchases (just to get started)
3% tax on capital gains full stop no bs
payroll/social tax reduced to 7% with 3.5% on the employer and 3.5% on the employee.
Corporate income tax capped at 7% no bs
Personal income tax capped at 7% no bs
Do that and watch a new Chilean Golden Age begin as money just pours into Chile. So much money.
If the gubmint cant handle living on the proceeds…then slash the gubmint starting with the first girlfriends cabinet that they said wouldnt even exist.