Tuesday, January 1, 2013

USGOV loves to lecture MEXGOV

As an example of USGOV problem solving expertise, the only thing that we need to examine in any depth is the proposed tax hike, as a response to the so-called fiscal cliff that they've tumbled over as of January 1, 2013.

MEXGOV officials should take note of this when the USGOV is lecturing them on why things don't work very well in Mexico. The US has borrowed US$16 trillion and don't have any functional way to pay off the debt.

Even all the money generated annually by narcotics sales in the US wouldn't begin to put a dent into the debt picture that the US faces. (yes, Europe is worse off and China is in trouble)

All of the high-handed platitudes handed down from USGOV officials are rendered moot by their decision making and implementing expertise when it comes to their national finances.

In Mexico everyone is required to pay something in national tax. In the US, apparently only half of its citizens pay tax -- the other half don't -- which would seem to me to be a vote buying scheme (but nobody asked me). What do I know? Due to its importance to the Mexican national economy, the maquila industry has two important presidential decrees that directly stimulate this sector by decreasing the tax rate to 17.5% of its taxable income. This maximum rate of 17.5% covers both the income tax and business flat tax.

1 comment:

  1. Yes, and the US Legislature hasn't passed a budget since 2009 and have no intentions of doing so during the next four years while the current president holds office.