[FeloF]

When certain jurisdictions in California started their camera surveillance program, they managed to get record numbers of infractions the first year. There were legal challenges, of course, but there was one that stood out. Someone figured out that the private contractor hired to install and operate the camera surveillance system was getting paid on a commission-per-fine basis. In other words, they had a direct conflict of interest in creating false positives. The courts ruled they could not be paid that way, so the contract had to be changed to avoid corruption or the appearance thereof.

During the initial stages of this great experiment, an astute legal observer noticed a loophole: In California, a person being cited by a human officer signs a piece of paper promising to appear in court under penalty of law. When you get a letter in the mail telling you to show up in court, there is nothing to legally bind a person to appear. All you had to do was throw the letter in the recycling bin (this is California, after all) and move on.

That’s also been changed. Now if you get the letter, you have to try and fight it like any other ticket.

Just in case you might think the Ministry of Silly Traffic Fines could only exist in this slice of Paradise.

The takeaway lesson: activists are needed to FOLLOW THE MONEY and challenge the law wherever it presents a weakness. There is at least one lawsuit being heard by Sala IV based on the unconstitutionality of making the vehicle’s owner responsible for a traffic violation committed by a third party. This nuance is wreaking havoc for car rental companies and other business sectors that hire drivers, such as shuttle services and transportation companies.

[FeloF]

Right you are. Sorry I did not notice your income was of the “unearned” variety. If you are being taxed twice on the same income, I would suggest you could contact the U.S. embassy to see if someone could provide you with advice on the situation. I believe it is fundamentally wrong for you to have to pay taxes to both countries for the same revenue. If that’s the way it is now, it needs to change. No U.S. citizen should be penalized for choosing to live elsewhere.

[quote=”DavidCMurray”][quote=”FeloF”]Hi David,

Maybe you qualify for the Foreign Earned Income Exclusion.

Nope, the Foreign Earned Income Tax Exclusion only applies to earnings from work performed. Rents, dividends and interest, pension and retirement savings distributions are not “earned” income for these purposes.[/quote]

[FeloF]

Hi Jack,

I don’t find it surprising that Costa Rica collects a very small amount of their GNP in taxes. Their taxes are very low relative to anywhere I’ve seen, particularly income taxes. Property taxes are comical. Most of their tax revenue is based on cruelly regressive forms of taxing like their astronomically high sales tax. For such a human-rights-oriented society, I find the regressive taxing to be quite surprising.

As you mention, the inability to collect tax revenue reflects on a society’s ability to build major capital projects. Costa Rica’s transportation infrastructure is an obvious reflection, along with the weak security and justice system. At least they focus what they do collect on something useful, like education, instead of shiny weapons.

Cheers,
Felo Falls

[quote=”Jackdiv”]First, I would be very surprised if any tax applied to non-CR income of non-citizen residents. If it were to do so, the credit is generated from Form 1116 and you do not need to file Schedule A. Although 1116 generally is used to gain a credit for foreign tax paid on foreign income, I believe it allows for a credit on any taxation of US based income as well.

A longstanding problem in Latin America is the very low percentage of GNP that is collected in taxes. This greatly limits their ability to invest in infrastructure, security, education, etc. Surprisingly, Costa Rica ranks near the bottom (lowest % of GNP collected) of countries in this category.[/quote]

[FeloF]

Hi David,

Maybe you qualify for the Foreign Earned Income Exclusion. Here are the details, hope this is helpful:

http://www.irs.gov/businesses/small/international/article/0,,id=97130,00.html

Cheers,
Felo Fallas

[quote=”DavidCMurray”]The Chinchilla legislative coalition is considering a “universal” income tax similar to that which is imposed by the IRS Code on all U.S. citizens. Under the IRS Code, income derived from any source, anywhere in the world, is subject to U.S. taxation. There are, of course, some exceptions.

[b]Question: [/b]Does anyone know for certain if the IRS Code makes any allowance for income taxes paid to a foreign country? If I pay (say) $1,000 in income tax under this Costa Rican proposal, do I get any relief under the IRS Code? We itemize our federal return and deduct our property taxes on the Schedule A. Is there a means to deduct or (better still) claim as a credit foreign income taxes?

All our income is derived from U.S. sources (Social Security and government retirement).[/quote]

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