Costa Rica takes aim at foreign investors with tax
Written by: Isabella Cota
Published on: January 22nd, 2013
Link to article
Summary: This article is discussing the decision of Costa Rica to increase its tax on foreign investments by up to 30 percent, adding on to the already 8 percent. This imposition of taxes was based on a desire to stabilize the currency that is circulating throughout Costa Rica. Foreign investments are believed to be a large source of pressure on currencies, and causes problems with them. Costa Rica is one of many that has begun this trend of erecting "barriers".
Thoughts: I am not really sure how Costa Rica's currency has been or is being affected by foreign investments, and I'm not even sure how the US dollar is being affected. The barriers being erected by Costa Rica seem like they will be very hurtful towards their supply of money, but maybe the stability will be better in the long run? Maybe even more countries will follow suit to protect their currency.
Article's Relation to Politics: This article ties in politically to everyday life in Costa Rica because it affects how money will be entering their country from foreign investors, and the loss of money from the lack of investors. Costa Rica's economy was compared to that of Maine's, and losing a foreign source of income forces citizens to rely heavily on their exports and government assistance, if possible, to aid them.
Thoughts: I am not really sure how Costa Rica's currency has been or is being affected by foreign investments, and I'm not even sure how the US dollar is being affected. The barriers being erected by Costa Rica seem like they will be very hurtful towards their supply of money, but maybe the stability will be better in the long run? Maybe even more countries will follow suit to protect their currency.
Article's Relation to Politics: This article ties in politically to everyday life in Costa Rica because it affects how money will be entering their country from foreign investors, and the loss of money from the lack of investors. Costa Rica's economy was compared to that of Maine's, and losing a foreign source of income forces citizens to rely heavily on their exports and government assistance, if possible, to aid them.