| | |  Business News | September 2009 
PAN Does Not have Alternate Tax Proposal
 Ivonne Reyes Campos - Rumbo de Mexico
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September 15, 2009
| | Josefina Vázquez Mota (Cuartoscuro/Guillermo Perea) | |
The federal government does not have a backup plan in case opposition legislators reject its budgetary proposals for 2010, says the leader of the National Action Party (PAN) parliamentary group, Josefina Vázquez Mota.
The administration's economic package proposes imposing a general two percent tax, which would apply to food and medicine.
Facing criticism on the proposal from opposition legislators and members of the business community, Vázquez insisted that it is a responsible proposal and said that the PAN will closely follow how the debate plays out in Congress.
"We are going to watch the discussion and debate," she said. "And surely from there we will start paying attention to other considerations, but for the moment we have no Plan B. Instead, we want to step back and allow a responsible discussion on the administration's proposal."
She said that President Felipe Calderón's initiative takes into account the weight of the current economic situation. Vázquez emphasized that the substantial fall in petroleum income has meant a major change in the country's finances.
"Financing from petroleum has run out, and we have to reconsider the alternatives. But without a doubt, we are in the mood to listen," she said.
Vázquez said the PAN will listen to all the parties' approaches regarding the economic proposal, but she said that Panistas will continue to point out the benefits of the administration's proposal, which stated objective is the redistribution of resources to the poorest people in the country.
"We believe that the proposal is a profound reflection, without a doubt," said Vázquez. "In particular, the administration's economic package is a decision to allow the inclusion of millions of Mexicans in the economic benefits, and not only certain economic segments of the population."
Ernesto Cordero, Secretary of Social Development, said in a press conference that if the administration's economic package is rejected in the Chamber of Deputies, "There is no Plan B for the poor."
Cordero said that the new 2 percent tax against poverty would have, at the most, an impact of 69.32 pesos per family per month.
He said that Mexico's poorest would see more gains than losses from the new tax, and that those who participate in national opportunities and alimentary programs will receive benefits of more than 13 times what they would pay under the new tax.
The PAN faces big hurdles in Congress, following major losses to opponents in July's midterm elections.
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