Regressive Pitfalls of Tax Reform

MEXICO - Report 18 Sep 2013 by Mauricio Gonzalez and Ernesto Cervera
Executive Summary The government of President Enrique Peña Nieto unveiled its budget proposals for 2014 along with closely related pieces of legislation that imply major changes to tax and fiscal policy while greatly expanding social security coverage. The stated purpose of such a reform would be to increase economic growth and family wellbeing. More specifically, the Peña administration’s proposal offers to improve social wellbeing by assuring pensions and unemployment insurance for all, programs whose costs surpass available public funds. While resisting the idea of eliminating the VAT ex...

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