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Trying to make sense of Colombia’s “Strata” economic system (2014)

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11–17 of 17 posts

Re: Trying to make sense of Colombia’s “Strata” economic system (2014)

#11

On the surface this looks a little bit like a Land Value Tax, which tends to get broadly praised by economists as efficient and fair. Enforcement and structure appears to be uneven, but it doesn't sound much different from property taxes here in the US.

It's a different animal than property taxes (which we have in Colombia too.)

If you want to comparison shop high speed internet access, for example, you have to get a quote from each provider, as the rate is based on your estrato. Things have gotten better recently but until the last couple years, those rates were just in a big binder in the office, not something you could just look up online. I feel it hurts competition - providers can’t just advertise a monthly rate - and I can only imagine the added complexity in billing systems, etc, that ultimately is passed on to the consumer.

Re: Trying to make sense of Colombia’s “Strata” economic system (2014)

#12
post #6
post #3

Earlier quoted context omitted.

As a Colombian I can say that most people declare full income due to fear of being chased by DIAN (colombian IRS) which is probable the most corrupt institution in the country, meaning that if you don't declare your full income they'll shake you down for everything you have, I've personally heard cases of people making innocent mistakes in taxes and getting extorted for millions upon millions by "honest DIAN officers…

How about replacing it with nothing?

Works where I live.

Re: Trying to make sense of Colombia’s “Strata” economic system (2014)

#14
post #6
post #3

Earlier quoted context omitted.

As a Colombian I can say that most people declare full income due to fear of being chased by DIAN (colombian IRS) which is probable the most corrupt institution in the country, meaning that if you don't declare your full income they'll shake you down for everything you have, I've personally heard cases of people making innocent mistakes in taxes and getting extorted for millions upon millions by "honest DIAN officers…

How about replacing it with nothing?

No system of taxation?

If you can show us a modern functional large-scale (i.e. nation-sized) society that has no taxation, then I'd love to see how they do it.

I can't think of any examples, though, so would welcome your thoughts on this.

Re: Trying to make sense of Colombia’s “Strata” economic system (2014)

#15
> Believing that governmental subsidies should be focused on individuals and families in need and not on housing, UN-Habitat has been working with the city of Bogotá to refocus priorities.

The socialist meddlers from the UN are clueless and looking to repeat the same mistakes but who cares as long as they get to be in charge

Re: Trying to make sense of Colombia’s “Strata” economic system (2014)

#17

On the surface this looks a little bit like a Land Value Tax, which tends to get broadly praised by economists as efficient and fair. Enforcement and structure appears to be uneven, but it doesn't sound much different from property taxes here in the US.

It's a different animal than property taxes (which we have in Colombia too.) If you want to comparison shop high speed internet access, for example, you have to get a quote from each provider, as the rate is based on your estrato. Things have gotten better recently but until the last couple years, those rates were just in a big binder in the office, not something you could just look up online. I feel it hurts competi…

Well, is this really wrong? If I get work done on my house as a young person, I pay as much as 10x what the same workman would charge my grandmother in law. The workman knows he/she can get away with charging a young person who doesn't have to live off social insurance more. The workman would never get the job from a retired in Prague if they charged what they charge yong people. However, if they charged everyone the reduced rate, then they would never cover the cost of tools and training.
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