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Mexican Tax Hike Will
Drive Mexican Shoppers North

Investor´s Business Daily, by Editorial

Original Article

Posted By:PageTurner, 1/9/2014 8:33:26 AM

The Border: Twenty years ago, Mexico threw open its doors to free trade, creating a big middle class on its border with the U.S. But now it´s chasing that same middle class into this country, thanks to a foolish tax hike. It was on the anniversary of the North American Free Trade Agreement, one of the country´s smartest moves, that Mexico has made one of the dumbest — one that can´t help but do the opposite of what NAFTA did and drive trade north. As part of the government´s economic package for 2014, Mexico´s legislature approved a measure to raise

Comments:
The Mexicans make a hash of things, hiking taxes in their prosperous borderlands to make all sales tax rates uniform, instead of cutting taxes to the borderland levels to make the entire country prosperous instead of just the borderlands. Net result? US retailers will rake billions. Mexico´s rulers just don´t get it.

      


Post Reply  

Reply 1 - Posted by: metalman2, 1/9/2014 9:34:00 AM     (No. 9685675)

This article only touches on one of the tax changes made in Mexico. The tax structure of the Maquiladora system has also been changed dramatically as well as the way corporate profits are computed and taxed. Trouble is they can get away with it. Where are these establishments going to move to avoid taxation? Back to the U.S. --- of course not. It 3 times as bad here.

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Reply 2 - Posted by: texaspast, 1/9/2014 9:54:41 AM     (No. 9685688)

OP, if they got it, it wouldn´t be Mexico.

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Reply 3 - Posted by: snowoutlaw, 1/9/2014 11:36:19 AM     (No. 9685837)

Isn´t that what socialists always do? We call them Democrats but raising taxes is a never ending game for them all.

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