It's Time for Mexico to Tax the Rich

[Judi Lynn]

BY
KURT HACKBARTH

Mexico is one of the most unequal countries in the world, with a caste of superrich lording over a mass of urban and rural poor barely surviving. Andrés Manuel López Obrador’s transfer programs have gone some way toward distributing wealth, but much more needs to be done.

usterity and the fight against corruption will allow us to free up sufficient funds, more than we can imagine .?.?. to stimulate the development of Mexico,” said President Andrés Manuel López Obrador (AMLO) in his inaugural address on December 1, 2018. “With this simple formula of ending corruption and putting republican austerity into practice, there will be no need to raise taxes in real terms, and this is a commitment I am making.”

“Austerity,” “no new taxes”: Just what kind of administration was AMLO launching only minutes into his presidency? A year and a half later, and with the aggravating circumstance of a COVID-19-induced recession in the offing, both the successes and limitations of the president’s fiscal policy have become much clearer.

A Politics of Principle

AMLO took pains later in the same speech to distinguish his definition of the word austerity from the one that has ravaged economies worldwide. “[It] does not mean, as is thought in other countries, a mere collection of adjustments in productive and social expenditure. Here we understand it not only as an administrative matter, but as a politics of principle, one that implies ending the privileges of the top-level bureaucracy. [Former president Benito] Juárez said that public officials must learn to live with a just sense of moderation, and we sustain that there cannot be a rich government with a poor population.”

In other words, what AMLO has argued for, here and elsewhere, is a moral understanding of austerity: the idea, inherited from Rousseauian republicanism and the nineteenth-century liberals who laid the foundations of the modern Mexican state, of enlightened governors who live within their means and lead by example. In a country oppressed for centuries by top-heavy, centralized administrations, from the viceroys of New Spain to the “Pharaonic” presidencies of recent times, the message is a potent one.

More:
https://www.jacobinmag.com/2020/07/mexico-amlo-tax-reform

[I_UndergroundPanther]

1. We need to do

What Mexico is doing in america.

Good for Mexico.