Colombia’s New Tax Reform Proposal Exposes Dangers of Overreaching Fiscal Policies

As Colombia moves forward with its third tax reform under the current administration, a familiar pattern emerges—one that should raise alarms for Americans watching global economic trends closely. Finance Minister Germán Ávila presented a sprawling tax increase package seeking to collect approximately $6.5 billion, touted as necessary to stabilize the nation’s finances amid a deficit exceeding 7% of GDP. Is Heavy Taxation the Solution or the Problem? The Colombian government aims to broaden the VAT base dramatically—applying the full 19% rate to gambling, digital platforms, even churches; removing VAT exemptions from foreign tourists' lodging expenses; and hiking taxes on hybrid...