The Mexicana advance

National The fiscal reformation will affect more to the less favored ones in the Mexican families The advance By: Carlos Damian May 18, 2013 The initiatives of implementing the VAT to everything and for all Mexico. - How it was discovered the existence of the black thread and similarly like the world was revolutionized when the man had in his hands the hot water, it is this way how the OCED discovered the miraculous remedy so that Mexico can overcome the “economic acting of Mexico in the last decade it has been mediocre". This organization discovered the solution like the great sorcerer that it cures all the financial and economic wrongs: "big structural reformations that they go from the opening from Pemex to the private capital to the application of a tax to the consumption of goods basic today they’re exempt of that obligation", and with this made recommendation, the organism considers that it is enough so that Mexico can traffic for the path of progress. Mexico is part of this organism from 1994, of the International Monetary Fund, and of the World Bank -that they are part of the group of magicians that they recommend Mexico -, it registers a long record of " discoveries ", type coffee with milk and " recommendations " of “big structural reformations", with “magic water” in each corner of Mexico, and all these “lukewarm waters” were continued on time and those that five neoliberal governments summed up were, from Miguel de la Madrid until Felipe Calderon going by the president cowboy V. Fox, and until today the country has not left the ravine in that these " wizards" have put it with their “magic arts”. In fact, to each step with the structural reformation", Mexico collapses a little more in this swamp of witchcraft. Perhaps the general secretary of the OECD, José Angel Gurria (JAG), he wants to sum up all those structural reformations that it could not sum up as Minister of Treasury that belonged to Ernesto Zedillo. We suppose that his insistence, now from the OCED, be extending its command that how secretary of Zedillo he was not able to, and “to propose” in consequence to the Mexican government “to take the changes farther already introduced in 2008 in the energy sector". It before mentioned it would be made, “even through a constitutional amendment that allows sharing the risks and the benefits with the private sector". The benefits that it would share the Mexican state with the private initiative as our Mexican experience are not in fact in path that JAG outlines it. This slanted information indicates us that the State as it has been documented per years, it is since as always the one that assumes all the risks and the high costs; it is the private sector the one that enjoys the juicy benefits. In this combine, it is the old trick of the socialization of the losses and the privatization of the earnings. In this factory of lies in the one that the OCED “recommends” us the “privatization reformation” in the energy sector, and in such a way we do meet with the forced question, if the black gold is given the big transnational foreigners and Mexican gratuitously, from where it will obtain resources the federal government? Because, approximately of 37.5 cents of each dollars budgetary it comes from the petroleum and to the great capital it has never been given that of paying tax to the federal government. First the soul is given the devil that to pay taxes to the Mexican government. The federal and state government empties the brain to find of where the taxes come, since the great capital with its dozen of lawyers, looks for to avoid, it finds that they return him the taxes and he refuses to pay taxes. But surprise, the siren comes with her song and she recommends another fabulous “reformation" which your practice witchcraft: VAT in foods, medicines, books, medical services, grants and everything the rest that is not burdened with that tax to the date or it has rate zero. The Mexicans know that the government won't compensate, the great fiscal hole that was caused when privatizing the oil gain, but the organism that JAG manages is happy with the possibility that its idea the government of EPN sums up it. With the brilliant idea of the song of the sirens, the poorest will see go up the payment of this tax 161.2 percent, meanwhile for the richest it will increase less than 40 percent. The poorest will cover 1.7 percent of the total payment of the tax now in the country and the deficit of more revenues 36.2 percent, proportionally less than before. The fiscal reformation that burdening foods and medicines, besides regressive, it will contribute to give certainty to the financial capital, because besides not paying taxes, it demands for their entrance certain such conditions as the accumulation of reservations, the fiscal balance, the increment of the internal public debt and the amplification of the tributary base. The fiscal reformation that will promote 'to fortiori' it will contribute to improve the certainty of the tributary revenues, and it will give certainty and protection to the great capital, in particular to the financier. It will be privatized Pemex and when opening it to the transnational capital, a drop will come in the collection so boisterous that it will be heard in China and Japan. It will hit financially to Treasury that will compensate with the revenues and utilities of the state's company that it gets paid no longer, and it will also return the taxes to the big companies like Televisa Corp. In this certainty of the information we meet with the widespread application of the VAT in foods and medicine, the supposed subsidies are eliminated to the prices of the electric power and gasoline. Taxes will be applied to the informal trade, and to the informal economy besides an increase to the VAT, of 16 percent to 20 percent. Finally, with these four categories they concentrate 81.7 percent. However for 20 percent of the family with smaller revenues, 52.3 percent of its entrance is dedicated to the acquisition of foods, in contrast with 28.4 percent of its expense that channels the rich family in the purchase of foods, for this reason, an tax obligation of the VAT in food would affect from a significant way to the less favored families, (euphemism to refer to the miserable families). With the current structure of the tax, the rich families will pay 41.1 percent of the total of VAT, and 1.1 percent they will pay VAT, of 10 percent of the segment considered as less favored family (or miserable). Where before 62 percent of the poorest Mexican family was only exempt of this payment, and 38.2 percent only paid taxes. Of the total the rich family only paid the three fourth parts of the expense, VAT. In this widespread increase of prices and of taxes the effect of the fiscal reformation will be different for the population, since it will be according to the received revenues. The last survey shows us as found miner with thirteen families owners from Mexico, they staying the concentration of the wealth (of 1 percent). The families of less revenues perceive 5 percent of the total entrance, while the rich families (1 percent), they concentrate 51 percent of the total entrance. Measured in function of the wages, most of the Mexican families perceive from 2.01 to seven minimum wages, a range of 8.4 to 429.47 dollars daily. The priority in the expense of the Mexican family registers in foods and drinks (36 percent of the total of the expense), followed by transport (20.4), education, pastime and entertainment (15) and housing and services (10.3) (La Jornada, política, p. 26, May 17, 2013).