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( Strategy Published in Journal March 28, 2008 )

Once again the controversial Value Added Tax came into the political arena. From the perspective of public finance is critical as a tax used to finance the State approximately 40%. This explains why the Minister Velasco discomfort with the idea of \u200b\u200blowering it, it is the cornerstone of its "responsible fiscal policy" aimed at preventing shortfalls and imbalances in public expenditure program, but, more importantly, the government avoids confrontation de Velasco with economic power, because obviously this would raise other taxes to compensate for the reduction of VAT and, given the tax load that is on the Chileans, would be absurd to give a hand and take away the other would be like in the box to win a fight: him everywhere and that policy and would be best, since it is nothing less than the usual abuse policy is the regular, ongoing and systematic policy applied in Chile since the power to citizenship.

must understand the importance of this tax when the tax burden in Chile hopefully get to 17% of GDP, while in other countries, the developed-over 30 and 40%. Without this tax, in practice, there would be no state, disappear almost completely and that is certainly the interest that many have, particularly the ultra-liberal entrepreneurs and anarcho-capitalists would like to see even the word state out of the dictionary of the Royal Academy of Spain .

This clearly, Velasco would say that VAT is a tax insane mental health of Chileans, it depends on the family budget. Produces the feeling of injustice so widespread in the national spirit. There are the possibilities of employers to exempt from this tax when they buy cars or other "capital goods" on behalf of their companies, and there are the ridiculously low rates paid by companies for their profits (17%) while housewives pay 19% as purchase and taxes without paying for what they earn discounts and rebates or tax breaks that benefit entrepreneurs are in abundance. Yet

is shameful proposal to lower from 19 to 18% VAT. Is so negligible so insignificant that irritates the poor attitude of parliamentarians and shows how incapable the policy today is to improve the status of the Chilean people.

Marcel Claude, an economist.