An article in the Huffington Post says, “President Enrique Pena Nieto proposed sweeping changes to Mexico’s social programs Sunday, laying out a plan for the country’s first nationwide pensions and unemployment insurance to be financed by cutting tax loopholes for big business.
Pena Nieto’s proposal had originally been billed as solely an overhaul of the tax system, and it would cut most of the industry-specific tax loopholes written into Mexico’s tax codes over decades.
But in his announcement, Pena Nieto went much further. He proposed the country’s first carbon tax on fossil fuels used by industry, a levy often touted as a way to combat climate change. He also called for a tax on soft drinks, which he said is needed to combat Mexico’s high rate of obesity.”
What will this mean?
There is clearly some skepticism when it comes to major changes. While some are clearly unhappy about the new proposed taxes it leads us to the question; what if Pena Nieto actually does something good with the increase in tax revenue? I suppose we will never know until we get there but we could be seeing some light and hope that some good with come out of all of this? Also, how could this affect those people who want to come and live in Mexico to try and get away from the huge tax sweeps in the United States?
The Huffing post goes on to say, “Indeed, some had expected him to push the widely unpopular idea of extending the sales tax to food and medicines. He said he didn’t adopt that approach because it would hurt the poorest Mexicans. But he said he would follow through with periodic increases in gasoline prices, which is aimed at phasing out fuel subsidies in Mexico.”
This seems to even the score a little bit and prevent those in need from even deeper poverty. I suppose we will wait and see the outcome.
For more details and to read the full article click Here!
-by Thomas Lloyd