Significance: Tax reform is the big elephant in the room in Costa Rican political circles, and has been for over a decade. The previous (PLN) government of Laura Chinchilla (2010-2014) made a half-hearted attempt to confront it but was stymied by opposition from within its own ranks in the 57-seat unicameral legislative assembly when it came to approving a modest tax reform. Aware both of the political sensitivity surrounding the issue and the fact that the ruling Partido Acción Ciudadana (PAC) has just 13 seats, President Solís revealed from the outset that he would not seek to approve an integral tax reform until the halfway point of his four-year mandate. Given the scale of the challenge, that time (May 2016) is now fast approaching.
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