A “profound” adjustment to the property tax proposed by the CEEY

The Espinosa Yglesias Study Center (CEEY) proposed to reform the Tax coordination law, with three objectives: redistribute federal spending resources to the poorest entities; create an infrastructure fund; and “in-depth” adjustment of the method of collecting property tax, a tax that has been “left aside”.

During a press conference, Rodolfo de la Torre, CEEY director of social mobility, revealed that Mexico is a country of great inequality, where “74 percent of Mexicans born into the poorest households remain in the poverty “. the “Proposals for the Social mobility» of Mexico in 2024.

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De la Torre recognized “we have a very unequal country, in the southern states there is less mobility than in those in the north of the country, this is due to the way the markets work, in particular that of labor, but also to public authorities. policies that have not “changed in decades.”

For example, he said that decentralized federal spending – which is distributed in municipalities and represents the main instrument of regional development – does not prioritize areas that have fewer resources. Social mobility

He explained that federal contributions – these are the taxes that go to the states so that they can use them freely – “favor entities that have greater economic activity, while contributions that are resources intended for questions of development such as education, health and infrastructure slightly benefit those at a lower level of development, but this is not enough.

Furthermore, he pointed out that there is a large margin to be collected, but this has not materialized, making the resources much more limited.

We first propose something that has a certain sustainability that goes beyond major temporary or six-year works that do not resolve the underlying problems. The first thing is to reform human rights. Tax coordination modify the meaning and forms of distribution, that is to say establish in the law the priority that the poorest federal entities and those with the least social mobility will have

Secondly, by creating an infrastructure fund that responds to economic and social problems, especially in backward areas, this fund would be constantly replenished, it would not be a one-off thing, but it would try to bridge the social gaps in the south from the country. countries beyond the special projects of an administration

And third, fundamentally adjust how property taxes are collected. Currently, municipalities across the country have little capacity to collect property tax, meaning that the potential of this tax is being sidelined. We therefore propose that the states and the federation should have powers to collect this tax in order to improve it significantly.