Has the tax burden been reduced?

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Jorge Corrales-Quesada

Abstract

Our definition of tax burden leaves out a form of tax paid by the citizen, which is that the price charged by certain public companies (essentially by virtue of certain monopolistic characteristics, probably due to prohibitions on the entry of alternative bidders), exceeds the costs that would be under a competitive regime. That is, by virtue of their monopoly, public companies can charge more than they would in a competitive regime. This higher price is a form of tax; it is a tax in disguise and is not considered in the tax burden. These profits generated when the criterion of "service at cost" is exceeded, have a fiscal purpose, especially when transferred to the Government. If this surplus were only loaned to the Government (as when bonds were bought from it), they would not be taxes, but only a loan, although it could eventually be considered as a lien if that government debt in favor of public companies is forgiven.

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How to Cite
Corrales-QuesadaJ. (2020). Has the tax burden been reduced?. Acta Académica, 29(Mayo), 55-65. Retrieved from http://encuestas.uaca.ac.cr/index.php/actas/article/view/576
Section
Acta Económica

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