Wednesday, October 30, 2013

Un país after Art Laffer's heart

The socialist candidate proposes having both a corporate tax rate and top personal marginal rate, in Chile, lower than the USA's;
Bachelet’s plan promised to raise corporate tax from 20 percent to 25 percent over a four year period — a point below the increase suggested by third-placed independent candidate and fiscal conservative Franco Parisi. However, in conjunction to the increase in corporate taxes, the plan also outlined a reduction of the maximum rate of personal taxes from 40 percent to 35 percent.
Though she also seems to be promising that if you like your education, you can keep it;
“The problem is that Michelle Bachelet talks about free education, but she does not specify whether she will finance the institutions directly, or if she will give more scholarships and loans,” Fielbaum said. “[The question is] whether what she will do will be useless, or it will really solve the problem by strengthening public education and by putting an end to profit in all institutions — not only the ones that receive public funding.”
While Bachelet’s government program states the aim to “end to profit-making in education,” it does not specify whether the whole educational system will be non-profit, or if financial gains will only be banned for institutions receiving public funding.
“We insist that public financing go exclusively to non-profit educational institutions, which are regulated and financed properly,” says the document.This subtle discrepancy leaves a major question unanswered: will educational institutions that do not received government resources be allowed to profit? 
Which could be a problem, given that over half of Chile's high school students attend private schools, many of them receiving government funding. Well, maybe Chileans don't read American newspapers;
The White House has issued a clarification. When the president said if you like your insurance plan you can keep it, what he meant was you can keep it if he likes it. 

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