In Colombia a group of people seems to be obsessed with more taxes, insist that very few taxes are collected in the country bringing OECD figures and some international calculations, however, it is worth noting that their bets are deeply distorted and full of inaccuracies that do not correspond to real figures, In addition to clarifying that in their analysis they are comparing pears with apples for the following reasons:
Colombia is a country of entry half cataloged as one of the most unequal in the world, an important part of its gross domestic product with which the per capita income data is calculated, corresponds to oil and mining income, which ultimately is They almost become their entirety in state income, therefore, in reality they do not enter to add the income that the general population truly receives. Thus, on average, from the monetary point of view, households are poorer than what is assumed in figures. On the other hand, the vast majority of the population has income below a thousand dollars per month, in fact, statistically, the wealthy population is practically non -existent.
(Read here: ‘I think no more taxes are needed, but more controls’: DIAN director)
Indeed, approximately the third of the country is considered poor while the rest, is slightly above the poverty line in a situation of obvious vulnerability, The latter tend to call middle class.
Particularly, the country’s tax structure is deeply progressive but concentrated entirely in the middle class, some say that it is not for the rich, however, we have just mentioned that this population is statistically irrelevant. The truth is that taxes end up focused on classes that are a majority, that is, A large population that thanks to their income as soon as it survives and another that manages to cover their needs with little dignity.
Payment of taxes
In line with what is expressed, it is clear that more than half of the population in practice does not pay taxes, because their income barely reaches them to subsist, or pay them, but in a lowercase proportion comparatively. The other portion, which is slightly above in terms of income, assumes the tax burden to a good extent through what their small ventures contribute or personally, personally, but with a substantial negative impact on its ability to provide some decorum.
Basically, this group is what is actually financing the entire state apparatus, so by definition it is excessively taxed. As a result of this reality, in Colombia, over the years a gigantic informal market has been configured that ends up being a lifeguard for a substantial portion of the population. Inside, a good part of what is purchased and sold, in cash, does not pay taxesif I did, the income of the least favored would not be enough to cover their most elementary needs.
(See here: Rare Earth
In addition to all the above, there are other structurally differentiating points. Colombia is not comparable to the other OECD countries regarding the quality of expend that really serve people. This means that, seventy -five percent of what the population contributes so much effort, is lost in unnecessary bureaucracy, wrong decisions, managerial inexperience and corruption among others.
The truth is that within the countries with which we compare ourselves, the states are highly effective and well managed, for what they achieve, from afar, Better results with the resources provided by its citizens.
Tax payment in Bogota
In short, we have a state, which basically appropriates more than a third of everything that occurs in the country and that is not able to convert Such an amount of resources in real, palpable things that are useful for all.
This apparatus, is funded in a broad proportion, by a sector on the taxed and vulnerable of society because, to the rest, the majority, its income does not really reach it to pay taxes.
Consequently, tax fans, who do not really know their country and have no idea what the accumulated true tax burden of these segments is, have designed a disastrous, incredibly complex and perverse tax system, which tries to catch for all The means to those who can pay more, even at the expense of the deterioration of their well -being, promoting the vertiginous growth of an informal market, to which all those who are not enough to survive within the framework of such aggressive structure migrate.
Finally, it is worth making it very clear that what has been doing in tax matters is not right, part of false, misguided premises and is also very unique. The truth is that we must stop proposing new taxes, on behalf of such a custom we become the OECD economy with the less competitive tax structure, that is, with this way of acting we are deteriorating the formal productive system.
From now on, our effort has to be focused solely on improving state effectiveness, bringing it closer to that of developed countries, so that it is possible to invest that more than a third of the value generated by all, on things that really develop the country , transform it and allow the poor majority, substantially improve their income, so that they can start paying taxes and the heavy burden of public spending, that will finally begin to fulfill its function, cease to be assumed only by the middle class.
Armando Ardila Delgado
Manager at Teknidata Consultores, strategy professor and complex projects.
