| | |  Editorials | Opinions | October 2009 
Special Treatment
 Pablo Trejo - The News
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| | Felipe Calderón | |
To combat tax evasion and tax avoidance, the Secretariat of Finance presented a new proposal for revenue collection, but instead of tackling the problem, they are flexing their executive muscles and complicating the lives of the moral people who pay their taxes by creating a new tax, called Contribution Against Poverty (CAP).
Felipe Calderón decided to further complicate the Mexican tax system, making it more complex, confusing and costly for normal people rather than seeking to correct the tax laws by eliminating special treatment for large companies. It has been shown that these large corporations do not pay taxes and in most cases receive multimillion-peso returns at the expense of normal taxpayers. We end up not only providing financial resources to the Mexican state, but also see those resources transferred to corrupt businessmen.
The exemption rules were designed by the federal government in order to maintain popularity during election times and to help official candidate campaigns. These schemes had the backing of a compliant legislature, in addition to the authorization and support of state governors and the blessing of the powerful oligarchic interests that we know today as the powers that be.
To give an idea of how these corporate special treatments affect public finances, recent studies have shown that while we the people pay 28% of the ISR, the large corporations in Mexico only pay an average of 8% of the same tax. This means that the government has to look elsewhere for income and ends up irresponsibly spending oil profits and brutally plundering Mexico's natural resources.
In the latest legislature the Single Rate Business Tax (IETU) was designed with the aim of eliminating the possibility of tax evasion. It was said that this tax would reduce the privileges of large companies and would force them to pay taxes equivalent to the ISR. The result was a much more complicated tax system and it didn't change a thing concerning corporate loopholes.
Lack of proposals in the legislature will condemn the final outcome to yet another tax on the majority of the population, leaving corporate privileges untouched. We'll see the results in the coming days.
pablotrejoperez(at)hotmail.com
* Doctor of Public Administration |
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