- Accuracy in Media - https://www.aim.org -

Mexico Face Plant: Taxing the Rich plan won’t help Economy

WASHINGTON — Mexico followed Europe and Obama’s example by proposing a tax raise for those who earn more money, among other proposals to revive a struggling economy.

enrique pena nieto podium [1]Reuters reported [2] that some of the other proposals included a levy on stock market gains and improving social programs for the poor. Initially, they were going to expand a controversial sales tax, but refrained from doing so.

At least half of the population is impoverished and now the fiscal reform measures will provide a universal pension and unemployment insurance. Who will bear the cost of this? Rich and wealthy Mexicans, relatively speaking.

The middle class was punished, who can be considered rich by Mexican standards, having to pay 32% of their income if they earn more than $37,800 per year. Other parts of the proposed legislation were a soda tax and carbon tax for polluters.

Similar to France, it may lead to an exodus of the rich [3] and wealthy to other countries with friendlier tax brackets.