EPN’s has big plans

President Enrique Pena Nieto, on the heels of getting his educational reform through the legislature, has ramped up his plans to overhaul the Mexican economy.  And man does he have big plans.

Here is a list of some of the biggest proposed changes.

1. The creation of the country’s first nationwide pension and unemployment insurance, financed by closing loopholes on corporate taxes.

2.  The levy of a carbon tax on fossil fuels to fight climate change.

3.  A tax on sugary soft drinks to fight Mexico’s soaring obesity rates.

4. A decision to drop the unpopular proposed sales taxes on food and medicine because the tax burden would be hardest on the poor.  However, he is planning on slowly phasing out subsidies on gasoline.

5.  Create incentives for people to move out of the informal sector.

6.  Create a rainy day fund for years when there are “excess tax revenues.”

I’m curious what long time leftist leader Andrés Manuel López Obrador  (or AMLO) has to say about these new plans.  Maybe he’ll be more amenable than he was to the proposed energy reform, which he denounced as “treason” and “a filthy, shameless robbery.” 

One thought on “EPN’s has big plans

  1. Interesting stuff.

    1. Probably a good idea, but difficult to do in a country as corrupt as Mexico. But if they got Progresa to work, maybe they could get this to work (although good luck closing those corporate loopholes in a serious way).

    2. This seems like it would be at odds with efforts to lower the tax burden on PEMEX and keep it from sinking even further than it already has.

    3. A BIG plus if they can enforce it.

    4. Good, if they can find revenue to replace it that doesn’t make them more dependent on milking PEMEX.

    5. Yes, but I’m not sure how you do this. It’s not as simple as offering people titles and deeds – you need real incentives to get them out, like access to more money/finance/loans as well as new forms of payment (I remember reading that one of the things that brought a lot of small US businesses out of the “gray” cash economy in the 20th century was the rise of credit cards and check payments).

    6. Is that ever going to happen?

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