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As to Social Security income…What many folks don’t realize is that if you have enough “other” income from a pension or such…. Uncle Sam taxes up to 75% of your SS payments in the US… Yep… do the right thing… save… invest… be lucky enough to have a pension plan… and they TAX your SS check thus reducing your payments… even if you’ve maxed out your SS contributions for years!
Since things are so bad for most folks… and pensions plans are fewer these days most folks don’t get hit with this tax on their SS income. But for those of us that have worked hard to save, invested, and planned our retirements… Uncle Sam reduces what he pays you in SS income by taxing it! If Uncle Sam does it… why wouldn’t CR? So as for CR I wouldn’t be surprised if they tried the same thing! Remember, many expats give up their income information to get residency… so dipping into that revenue to tax would require no income information assistance from any other government or added effort on the part of the CR tax officials. They just go back to all that information you gave up on your residency application!
Be very careful folks in accepting ANY new tax be it for the right reason or some misguided duty to pay your fair share for living in paradise! It starts small and NEVER decreases… and most times in NOT used for the purpose proposed! Expats do pay their share, be it sales tax, property tax or the money they put into the local economy.
All governments, including Costa Rica’s, are looking for ANY new revenue streams… and they’re getting creative. Look at the tax on corporations they’re looking to pass… a cute move. Just to hold property, or a car, or have an electric account… you’ll be taxed. No economic activity or income yet you’re taxed! For the average expat that has 3 or 4… that’s a quick $450-$600 per year no matter how much you have in retirement earnings. Not bad… the ultimate flat tax! Do they care how much you earn… nope… just pay it!
And how about the “temporary” luxury home tax that very quietly became permanent a few months ago? And of the money collected how much was used for the proposed purpose???
And how about all the benefits they use to allow for folks relocating to CR… all gone now! Import a quality car… and you’ve just been TAXED more the most Ticos make in a year! And remember, you paid taxes on that car in the states. Use twice as much electricity as the average Tico… more tax.
Face it… tourist and expats are seen as cash cows… remember we’re all millionaires or have money trees growing back in the states… just go shopping for a car on your own and you’ll see that! LOL If you allow them to start picking your pocket as they have started to do they will keep coming back for more!
What I have noticed… is that CR seems to shy away from the normal “sin” taxes that most other governments impose. How much is a pack of cigarettes here? Or a bottle of hard liquor? For a place that prides itself on a healthy lifestyle and longevity they don’t seem to make an effort to keep folks from hurting themselves! In NY where a pack goes for over $10 (YES $10!!!) they like to make folks believe it’s all done to keep folks from smoking and improving society’s overall health…. but we know it’s ALL about the tax income… for if everyone stopped smoking tomorrow governments all over the US would fail! I think there’s plenty of room to impose some sin tax in CR… since most of the folks I see smoking are expats anyway! Besides perhaps I can enjoy a few more meals without some gringo lighting up and ruining a wonderful night out! Driving by the local bar at night there’s NO shortage of gringos sitting at the front table (8 or more) EVERY NIGHT smoking and drinking for hours… seems like a fair place to impose some taxes on foreign income! LOL
Scott is right… nothing has passed YET… but the very fact that these ideas are floating around out there means they have a chance.. and for that very reason alone we should all be very concerned!
Just an opinion… replies welcome!
[quote=”2bncr”]Who is Bill W? A code or something?[/quote]
AA members are referred to as such… Although I really know a Bill W…. LOL
[quote=”sprite”]The best definition of a pretend economy is the one that defines the entire set up we currently have. It is an economy of designed scarcity in order to increase earnings.
Rather than make a washing machine that would last a life time, and the technology exists for such things, these items are designed to require replacement within a certain period. Rather than plan an economy based on the best use of available resources to benefit humanity, we currently plan for obsolescence of goods and the purposeful destruction of resources to maintain the scarcity and improve profits. They burn diamonds and dump coffee.
And then we have all the idiots out there following the lunacy of right wing politics and blow hards like Limbaugh who claim there are plenty of resources and room to grow no matter how big the population and no matter how much we waste. But the cows are coming home now…[/quote]
Great point Spirit… seems the “old school” idea of supply and demand is out the window these days… now prices are driven on fear and what some talking head THINKS might happen in the market. Look at oil right now… it’s being drive up by the FEELING that demand will increase with the economic recovery that the same people CLAIM is coming!!! NOT what we have as far as CURRENT supply and demand. When this recovery might happen seems pretty fluid as it seems these same folks keep changing the timeline and have failed to explain just what it is that is going to bring it about!!! But let’s face it… the pretend economy of the past 10 years and the churned bubbles we witnessed (Tech stocks, commodities, real estate, and associated financial instruments) were not REAL economic surges. They were pretend based on what people felt was something real. And now the real cost of our “playtime” has come home to roost!
It was a crazy time… companies would announce they were laying off 5000 employees and their stock would surge…. because some genius would say they were getting “lean and mean”.. never mind that we now had 5000 more people/families unable to buy their product… and apparently the enlighten management of these companies was so out of touch with REALITY that they had 5000 employees sitting around they apparently didn’t need!!! LOL Pure perception that had NOTHING to do with the real underlying value of the company or it’s stock price.
Real Estate was the big one… because it reached down to folks that were not playing the stock market or trading in commodities… it hit mom and pop… it hit main street… and it hit hard! More pretend economic games. And the banks were right there to make money on it… and when they had allowed folks to borrow their future…. what did they do… they repackaged all the loans and sold them to the market like they were REAL investment instruments… when in fact they were nothing more than junk bonds of a pretend investment~!
After QE3, 4, 5…. and the economy still isn’t where it was during the “good times”… perhaps we’ll see a readjustment of perception and real value!
[quote=”smekuly”][quote=”Imxploring”]Adsense…. more pretend economy ![/quote]
Imexploring
pretend economy lol that was funny
my friend who is actually with me on holiday these past few weeks read your post and laughed. this month he will be hitting his all time record month of $60 grand.. Ill take that pretend economy any day of the week
steve[/quote]
And Facebook is a $50 billion dollar company that produces NOTHING, has a total of 1700 employees, and has made it’s founder a billionaire… but in the overall picture does this type of business model make sense for anyone but the FEW that prosper? Do we really believe that it’s a business model that has a long term benefit or chance of adding to a REAL economy? I think we should all look back 5 years to the internet bubble… lots of pretend companies there created fortunes that came and went.
Great for your friend… Vegas LOVES winners too… so does the lottery…. and EVERY multi-level marketing scheme (Amway, Herbalife, Etc) loves to pump their success stories…. brings new players into the fold… but we all know that the big winners are few and far between…. because at the end of the day…. Even with Adsense…. SOMEONE has to make a sale…. and if that doesn’t happen… the house of cards comes down.
With that kind of income your friend is seeing he must have some incredible traffic on his websites and some great content… care to share a link to his websites… or might it be something that I might not want on my computer or those under 18 to view? LOL
When I use the term “pretend economy” I’m using it to point to all the new age “business” that does little but create wealth for the few while doing little to benefit society or produce anything of value.
Spirit…. can’t say I disagree with you… but unless we’re talking about the complete and total fall of mankind… and the end of civilization… at some point we’re going to have to get back to the basics… I guess the real question then is how far down we fall before we grab hold and start back up the mountain. I’m not sure we’ll fall all the way back to the hunter/gatherer level but I guess it’s possible and depends on your take on things. That’s the real question. I know it’s going to be ugly (Very much more than what the world is dealing with the past couple of years), many folks are not prepared or going to be able to deal with it, and it’s going to be a very long painful road.
Adsense…. more pretend economy that got us to were we are today! Remember all those 20-somethings touting their internet start up companies during the net bubble…. the guys that seemed to speak a different language when it came to their “business” and the plan they had to actually make money? Words and terms you never heard before…. they sure did sound impressive!!! Like they were smarter than the rest of us! And what are most of those guys saying now…. I’ll give you a hint…. they’re asking if you want fries with your Big Mac!!! LOL!!
Time for the US and folks to get back to basics…. like producing something we can touch, use, and need…. not more pretend “business” models that do not!
The US government via the CIA and NSA (don’t remember which one) had an interesting paper out a few years back that somehow saw the light of day, before the financial meltdown and the problems coming to a head at the moment. No cloak and dagger stuff… no conspiracy tale…just an opinion piece by some government researcher that the next big war or cause of worldwide civil conflict would be over clean water and FOOD! It dealt with global climate change and systematic financial failures on a worldwide scale. It was 8 pages or so, I had a copy saved on my computer and like most I tucked it away in the back of my mind as “Not in my lifetime”… go figure. I’m sure it really didn’t catch anyone’s attention at the time… but it seems that this fellow wasn’t all that wrong!
I think we’re looking at the shorter end of that time horizon! No doubt the writing has been on the wall for a long time for those of us that don’t have our information spoon fed to us. Most of us on this board have looked at Costa Rica as a lifeboat for the flood coming. Remember Scott’s “Perfect Storm” article? The US has for years lived on borrowed money and time… and as so many homeowners are finding out, living above your means and juggling debt comes to an end eventually. Without true grown in production and income, you’re sunk…. and the US has little of either.
Most of the world is in a mess right now, be it as result of reckless US policy and copying our lifestyle or their ties to US economic policy. The Fed has done little to fix this problem since world war 2. The debt load is beyond ANYTHING you can imagine both on the books (Official US national debt)or hidden in off book entities. Much like Enron the US has so many “free standing” debt magnets that hold much of the problem. And each state in the US has done the same.
The true problem is so hidden that we’ll all be shocked when it comes to light.
The dollar will be the currency of choice of a little while longer… but as we’re seeing hard assets and other REAL assets will take over! Reading that posting on inflation (above) makes you wonder if stocking up on canned tuna (or as Scott enjoys, canned salmon) isn’t such a bad idea! Gold is wonderful to look at and hold, but it’s hard on the teeth and the digestive system!Texas wrote….
“johnlack, you have a lack of sense. This disaster needs to be dealt with through legal channels. I don’t appreciate your suggestion of a solution-not appropriate, not acceptable & you should go to your room for a long time.”
Hey…. wait a minute there Texas! If your username is true to it’s word… I’m thinking some good old Texas justice is just what the boys from Paragon deserve! LOL
Didn’t Willie Nelson say it in song with Toby…
“Grandpappy told my pappy, back in my day, son
A man had to answer for the wicked that he done
Take all the rope in Texas
Find a tall oak tree, round up all of them bad boys
Hang them high in the street for all the people to see…”I know they don’t mention using some “imported” help from Columbia to do the job… but these days I guess it’s OK to use a day laborer to get the job done!
Just a thought!
Simondg wrote….
“As regards your legal expertise assertions that the legal case has to run it’s course for ten years before anything can be done well it seems we now have another armchair expert with all the answers but none of the experience. Why don’t you and lotus open a consultancy offering your non binding legal opinions for people in CR? You’re all such experts on every aspect of this case it’s astounding. From Lotus’s “my twenty years in real estate” high horse to your litigation expertise we realy are spolit for choice as to which expert to follow!”
Sorry dude…. seems that even the most basic of advice from folks here becomes fodder for a fight with you! I never claimed to be an expert… nor was I looking to argue with you. Besides one of the rules here is that we don’t give out legal advice…. but COMMON SENSE advice is permitted! Sorry I wasted my time posting! I’ll leave you alone now to rot and enjoy watching this situation develop…. in ten year or so we’ll see if my “legal expertise” was on target… but keep one thing in mind my friend… both Lotus and myself might not be experts (nor did we claim to be… but perhaps reading Comp isn’t your thing when you’re too busy looking to attack folks)… but we were both smart enough NOT to invest in Paragon and are both folks that saw the warning signs long before the house of cards came down… and perhaps that’s a little tidbit of wisdom that is rather important to take note of when you attack folks that are posting opinions and advice about a situation.
No doubt you’re just one of those folks that get on here looking to hide behind a keyboard and play tough guy because of a serious character flaw that makes doing so impossible in person… I’ll just refer to you as an “armchair tough guy”… safe and secure in the opinion that in real life you’re not nearly much of a man without the armchair!
Just an opinion… no need to reply… not that you’ll pass up the chance!
simondg…
Take a step back from your situation a moment… perhaps you might not like what Lotus is saying… and he and I haven’t always agreed in the past. But as much as you (and countless others involved in Paragon investments) might want to find a solution I too think it’s a bit bigger than all of us.
This scam…. yes let’s call it what it was… will be winding it’s way through the CR and US courts for a decade… and even then there will be legal challenges that will pop up from the players that will make it drag on longer. And that’s got to run it’s course before you can even think about now getting folks together, come to agreement and finance the cost to finish the infrastructure to add any real value to these developments. And where might the money come from to do that? If this was an issue with limited players you might have a better chance… but there are a few thousand… not only the poor folks that invested… but banks… vendors… workers… contractors… and government agencies!
I’m one who likes the challenge of bringing people together and resolving issues others thought were unsolvable, but this mess would require too much time, money, and resolve from too many people with a multitude of angles that it’s better you look at it as a lesson learned.
I do however wish you luck should you’re out of body experience not deter you from chasing this endeavor!
These boys were in BIG trouble LONG before the world financial meltdown… promises that went no where… one project started after another without any real progress made on the prior ones… threats of legal action directed at anyone that dare question their business or personal conduct… the warning signs were there LONG before the world-wide house of cards came crashing down.
As to a solution… it’s going to take a lot of TIME, MONEY, and PATIENCE if the folks involved are going to take the route that’s been suggested. And I’m guessing that most have little of that left after the boys at Paragon have had there way with them!
For now the folks holding title free and clear (hopefully) have nice rough camping sites (I had suggested that a year ago)…. and those with partial payments not holding title have a black hole they can throw MORE money into with a SLIM chance of ANY recovery… or, as I see it, an expensive lesson learned that most will walk away from.
Just a thought here…. but what percentage of money that was used for deposits and payments to Paragon was the proceeds of equity loans folks took out on houses in the states that are now under water or foreclosed? Seems Uncle Sam’s bailout of the banks reaches a lot further than we all might think! How many of these “investments” in Paragon are assets that the American taxpayers will be paying off for decades?
Given the culture and history of CR I think Ticos are in a much better position to ride out the coming storm. The same cannot be said for most Americans. Ticos are much more self reliant and industrious. There will be some pain… but nothing like folks in the US will be feeling. As we’ve seen over the past two years… CR is riding out the problems in much better shape than the US. And the problems CR does have, for the most part, are US related issues that bled south. (i.e. over development and crazy R.E. valuations.)
As for their feeling about “rich” gringos that escape the sinking of the US… we’ll have to see about that! Get your lifeboat set up now. I think most of us can see where the US is headed. How quickly things move might be rather impossible to determine. There was an interesting tidbit in the news today about Japan’s credit… something the US might very well be facing soon. And NO amount of “stimulus” will dig the US out.
While Carlin’s choice of words might be troubling for some folks here fearing some type of “damage” to their young children’s ears… the TOPIC and the FUTURE of the US should be a MUCH larger concern for parents… words are words… but the direction the US is headed and the future that your children will face (and suffer) should be what is REALLY scaring the hell out of you!
