JTG

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  • September 17, 2011 at 6:14 pm in reply to: Costa Rica’s proposed “universal” income tax #167886
    JTG
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    Try out this scenario: a single retiree can have about $28,000 of income before paying any US income tax (e.g. social security plus another 10k of income, using the standard deduction).

    I’m no tax expert, but I believe if the same income were taxed in Costa Rica, there would be an income tax of about $3900 (only the first $5600 is exempt, and the rest taxed at 10, 15 or 20%).

    So, if this person has no US tax, any credit would be useless. He would simply have a new $3900 tax due to Costa Rica.

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