The Impact of NAFTA and Options for Tax Reform in Mexico
Author: Chen
Publisher:
Published: 2013
Total Pages: 0
ISBN-13:
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The Impact of NAFTA and Options for Tax Reform in Mexico
Author: Jorge Martinez-Vazquez
Publisher: World Bank Publications
Published:
Total Pages: 64
ISBN-13:
DOWNLOAD EBOOKThe North American Free Trade Agreement (NAFTA) has had a profound impact on Mexico's economy and institutions. Mexico's tax reform should be guided not by NAFTA considerations, however, but by the objectives of higher revenues and a simpler, more efficient, and more equitable tax system.
The Impact of NAFTA and Options for Tax Reform in Mexico
Author: Jorge Martinez-Vazquez
Publisher: World Bank Publications
Published: 2001
Total Pages: 64
ISBN-13:
DOWNLOAD EBOOKThe North American Free Trade Agreement (NAFTA) has had a profound impact on Mexico's economy and institutions. Mexico's tax reform should be guided not by NAFTA considerations, however, but by the objectives of higher revenues and a simpler, more efficient, and more equitable tax system.
The Impact of NAFTA and Options for Tax Reform in Mexico
Author: Jorge Martinez-Vazquez
Publisher:
Published: 2016
Total Pages: 60
ISBN-13:
DOWNLOAD EBOOKSeptember 2001The North American Free Trade Agreement (NAFTA) has had a profound impact on Mexico's economy and institutions. Mexico's tax reform should be guided not by NAFTA considerations, however, but by the objectives of higher revenues and a simpler, more efficient, and more equitable tax system.The North American Free Trade Agreement (NAFTA) has had a profound impact on Mexico's economy and institutions. Clearly, no consideration of tax reform can ignore its role. The thinking about tax reform in Mexico requires evaluating NAFTA's effect on Mexico's economy, including its tax structure, and the effect of its tax system on trade and capital flows between Mexico and its NAFTA partners, the United States and Canada.Martinez-Vazquez and Chen review the evidence on NAFTA's economic effects, focusing on the changes in foreign trade and foreign direct investment flows in Mexico and the effects of these changes on Mexico's tax base and ability to raise tax revenues. Using marginal effective tax rate analysis, the authors also compare Mexico's tax system with those of Canada and the United States in terms of the effect on foreign direct investment.Martinez-Vazquez and Chen draw two main conclusions from their analysis. First, by fueling Mexico's exports and foreign direct investment inflows, NAFTA has altered the country's economic structure and hence the industrial distribution of the tax base. This transformation calls for adapting the tax structure to an economy oriented toward services and manufacturing exports. And second, Mexico's membership in NAFTA provides no significant reasons for fundamental change in its tax structure. The new wave of tax reform should concentrate on raising revenues, simplifying the tax structure, and increasing the efficiency and overall equity of the tax system.This paper - a product of Mexico-Anchor, Latin America and the Caribbean Region - is part of a larger effort in the region to foster research in economic development and public finance. The authors may be contacted at [email protected] or [email protected].
The Impact of NAFTA and Options for Tax Reform in Mexico
Author: Duanjie Chen
Publisher:
Published: 1999
Total Pages:
ISBN-13:
DOWNLOAD EBOOKSeptember 2001 The North American Free Trade Agreement (NAFTA) has had a profound impact on Mexico's economy and institutions. Mexico's tax reform should be guided not by NAFTA considerations, however, but by the objectives of higher revenues and a simpler, more efficient, and more equitable tax system. The North American Free Trade Agreement (NAFTA) has had a profound impact on Mexico's economy and institutions. Clearly, no consideration of tax reform can ignore its role. The thinking about tax reform in Mexico requires evaluating NAFTA's effect on Mexico's economy, including its tax structure, and the effect of its tax system on trade and capital flows between Mexico and its NAFTA partners, the United States and Canada. Martinez-Vazquez and Chen review the evidence on NAFTA's economic effects, focusing on the changes in foreign trade and foreign direct investment flows in Mexico and the effects of these changes on Mexico's tax base and ability to raise tax revenues. Using marginal effective tax rate analysis, the authors also compare Mexico's tax system with those of Canada and the United States in terms of the effect on foreign direct investment. Martinez-Vazquez and Chen draw two main conclusions from their analysis. First, by fueling Mexico's exports and foreign direct investment inflows, NAFTA has altered the country's economic structure and hence the industrial distribution of the tax base. This transformation calls for adapting the tax structure to an economy oriented toward services and manufacturing exports. And second, Mexico's membership in NAFTA provides no significant reasons for fundamental change in its tax structure. The new wave of tax reform should concentrate on raising revenues, simplifying the tax structure, and increasing the efficiency and overall equity of the tax system. This paper--a product of Mexico-Anchor, Latin America and the Caribbean Region--is part of a larger effort in the region to foster research in economic development and public finance. The authors may be contacted at [email protected] or [email protected].
Mexico - Country Economic Memorandum
Author: Weltbank
Publisher:
Published: 2013
Total Pages:
ISBN-13:
DOWNLOAD EBOOKOver the last ten years, the need for sustainable tax revenues has become clear, in order to provide more public expenditures in areas such as, poverty alleviation, health, education, and infrastructure, as well as for payment of the recent social security reform, and banking sector support. The report examines the key problems in Mexico's tax, and revenue system, identifying administration as the weakest factor in its tax system, where such weakness has contributed to political resistance in broadening the tax base. In addition, the system relies heavily on oil revenues, only about thirty percent of the total, and dependent on world prices, thus, the rest of the economy will have to bear a larger tax burden as a share of GDP. Meanwhile, various exemptions, and special regimes erode the base of the most important taxes - Value Added Tax (VAT), corporate, and personal income taxes, and, most tax decisions, and the derived political consequences, continue at the national level, while the delivery of services is increasingly devolved to sub-national levels. Within the reform options, the most relevant fall in three areas: national tax policy, administration, and inter-governmental fiscal relations, where the central theme is to improve revenue capacity, efficiency, and horizontal equity of the system, by simplifying laws, eliminating exemptions, and facilitating compliance, and enforcement. Such reform strategy will be successful if implemented in a coordinated way, by reducing evasion, and improving collection; by the already implemented income tax reform (end of 2001), although the VAT and petroleum taxation remain on the agenda for future action; and, by the State cooperation in the tax reform program, to improve enforcement, particularly the VAT.
The Tax System in Mexico
Author: Thomas Dalsgaard
Publisher:
Published: 2000
Total Pages: 86
ISBN-13:
DOWNLOAD EBOOKNAFTA to USMCA: What is Gained?
Author: Mary E. Burfisher
Publisher: International Monetary Fund
Published: 2019-03-26
Total Pages: 34
ISBN-13: 1498303285
DOWNLOAD EBOOKThe United States – Mexico – Canada Agreement (USMCA) was signed on November 30, 2018 and aims to replace and modernize the North-American Free Trade Agreement (NAFTA). This paper uses a global, multisector, computable-general-equilibrium model to provide an analytical assessment of five key provisions in the new agreement, including tighter rules of origin in the automotive, textiles and apparel sectors, more liberalized agricultural trade, and other trade facilitation measures. The results show that together these provisions would adversely affect trade in the automotive, textiles and apparel sectors, while generating modest aggregate gains in terms of welfare, mostly driven by improved goods market access, with a negligible effect on real GDP. The welfare benefits from USMCA would be greatly enhanced with the elimination of U.S. tariffs on steel and aluminum imports from Canada and Mexico and the elimination of the Canadian and Mexican import surtaxes imposed after the U.S. tariffs were put in place.
Monetary Policy Strategies for Latin America
Author: Frederic S. Mishkin
Publisher: World Bank Publications
Published: 2000
Total Pages: 38
ISBN-13:
DOWNLOAD EBOOKInstead of focusing the debate about the conduct of monetary policy on whether the nominal exchange rate should be fixed or flexible, the focus should be on whether the monetary policy regime appropriately constrains discretion in monetary policymaking. Three frameworks deserve serious discussion as possible long-run strategies for monetary policy in Latin America. A hard exchange-rate peg, monetary targeting, and inflation targeting.
Financial Policies and the Prevention of Financial Crises in Emerging Market Economics
Author: Frederic S. Mishkin
Publisher: World Bank Publications
Published: 2001
Total Pages: 48
ISBN-13:
DOWNLOAD EBOOKIn recent years we have seen a growing number of banking and financial crises in emerging market countries, with great costs to their economies. But we now have a much better understanding of why these crises occur and a better idea how they can be prevented.
