Thursday, April 17, 2014

Employment to increase in Chile

By 500 tax collectors, thanks to Michelle Bachelet; card expenses claimed as “business related” — which enjoy a discount on the country’s 19 percent value added tax (IVA) — will be scrutinized by a team of 500 tax inspectors set to be employed by the government. Supermarket spending, currently widely claimed under corporate expenses, will fall within the list of rejected expenses, though an appeal will be possible.
Bachelet’s administration aims to raise 3 percent of gross domestic product (GDP) in order to fund reforms such as the provision of universal free education — the government has projected that 0.5 percent will come from reducing tax evasion, while other measures, such as an increase in corporate tax, will make up the remaining 2.5 percent.
No estimate of what dis-employment effect that two and a half points of GDP will have, as the corporations respond to the higher taxes. Not to worry, there's always mining at which to throw money;
With GDP growth in Chile expected to slow to around 3.5 percent this year, according to Finance Undersecretary Alejandro Micco, the government has signaled its intention to boost the economy by ramping up the Codelco’s output by 10 percent this decade — despite concerns that global supply could outstrip demand in the near future. 
Demand from China, where most Chilean copper is now going, is already dropping. We guess they're counting on supply to create its own demand.

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