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The Value Added Tax In Mexico

40 years ago, Antonio Ortiz Mena posed an tax reform Luis Echeverria perverted, to the extent that the value added tax, which should make it simpler and fairer tax revenues end up in a cascading tax , added or tax competencies fiscal menu now oppresses us and, paradoxically not solve the basic requirements of governmental resources. It’s a myth that foods and medicines are not overburdened with taxes, as: production companies, workers who work in them, shippers, packaging and support marketers excessive tax burdens. VAT correctly applied not only not increase the final price but on the contrary tend to decrease. VAT should not be seen as another tax, the VAT is a state’s involvement in the increased value of products and services, which applies to each increment of value and not the final price paid by consumers.

If pervert its implementation, making consumers pay the total tax burden is unfair, as companies largely upon the proportion can be recovered and not the vast majority of final buyers, ie all of us when we buy or consume a product. In addition to the above argument, the added value should pay the beneficiary of this increase and the final purchaser. Today “at a quarter to 12” after 40 years, in which our politicians have said all sorts of nonsense to hide the country’s fiscal reality: with some borrowed money, other current printing unsupported and the latter with the product our non-renewable resources, are facing the painful reality that they ran out easy ways out and you have to get revenue from wherever … ah but that if, without telling the truth. The truth is that the Mexican State “does not have that drop dead” and our politicians need to find days, how to fix the mess left by accumulating for decades. The solutions are not easy and certainly prove painful, more painful, because not the tax system be prepared for a comprehensive reform, you have to apply patches significantly unfair (pay even more those who already pay too much), and yet not be really efficient to address the shortfall . Today “there is nor where to move,” any short-term solutions to take our heroes to be bad policy, but what if we can demand is that the medium and long term, from the truth, structure a fiscal policy that is fair, even if, by the mere echo of all pay our share, according (no more, no less) to our economic capacity.