President Enrique Pena Nieto, on the heels of getting his educational reform through the legislature, has ramped up his plans to overhaul the Mexican economy. And man does he have big plans.
Here is a list of some of the biggest proposed changes.
1. The creation of the country’s first nationwide pension and unemployment insurance, financed by closing loopholes on corporate taxes.
2. The levy of a carbon tax on fossil fuels to fight climate change.
3. A tax on sugary soft drinks to fight Mexico’s soaring obesity rates.
4. A decision to drop the unpopular proposed sales taxes on food and medicine because the tax burden would be hardest on the poor. However, he is planning on slowly phasing out subsidies on gasoline.
5. Create incentives for people to move out of the informal sector.
6. Create a rainy day fund for years when there are “excess tax revenues.”
I’m curious what long time leftist leader Andrés Manuel López Obrador (or AMLO) has to say about these new plans. Maybe he’ll be more amenable than he was to the proposed energy reform, which he denounced as “treason” and “a filthy, shameless robbery.”