A new income tax law will not be fast tracked through the legislature. Instead, the law will face the traditional committee hearings and discussion in the full assembly.

That was confirmed Tuesday by Evita Arguedas Maklouf, leader of the Movimiento Libertario, which wanted a full hearing.

She said that she and her fellow party members met with central government officials along with others in the legislature that do not support the new law. The fact track method, which was created especially for the massive fiscal package in the last legislature, would limit discussion by lawmakers.

Libertarios oppose the measure because they have said the financial problems of the country could be solved by better collection and action against corruption. Libertarios in the last legislature fought long and hard to keep the fiscal package from becoming law. They were helped by a Sala IV constitutional court decision that derailed the proposal.

The tax law that has been delivered to the lawmakers by the Arias government is identical to the proposal for income tax that was part of the fiscal package. It was Chapter V.

An introduction says that in the last 16 years the income of the lower 20 percent of the population increased only 6.8 percent while the income of the richest 20 percent increased 96 percent. That means the richest fifth earns 20 times the average of the poorest fifth, it said.

The new proposal retains the concept of global taxation in that citizens and residents will have to pay income tax on money generated anywhere. The proposal also retains the concept of capital gains tax on the sale of real estate or intangibles, like stocks and bonds.

The current law has different percentages of tax depending on the origin of the income. Salaries are taxed at 10 and 15 percent. Income from rentals pays a 15 percent tax. Income for professionals is taxed from 10 to 25 percent. Some other types of income are taxed at rates from 0 to 15 percent.

Under the proposed law all these incomes would be lumped together to be taxed at an established, progressive rate

The proposed rates for individuals are 5 percent of the first 2 million colons, some $3,880 at the current exchange rate, 12 percent from 2 million to 4 million, 18 percent from 4 million to 8 million, 22 percent from 8 million to 15 million, 26 percent from 15 million to 30 million and 30 percent for amounts over 30 million.

Today 30 million is about $58,250. The amount taxed is the net income after various deductions. Those who earn salaries less than 450,000 colons ($875) a month probably will pay little or no taxes under the new plan, lawmakers have said.

Corporations would continue to pay at the 30 percent rate, but there would be a rate break for small business.

The income tax proposal is 151 pages, and changes are likely in the legislature.