The Fiscal Reform Required for Mexico in 2025

Journal Title: American Journal of Environmental Economics - Year 2023, Vol 2, Issue 3

Abstract

The aim of this article is to analyse and explain why tax collection in Mexico is so low, as well as to propose some solutions to this serious problem. The work is framed under the deductive method, hermeneutic paradigm and a quantitative approach. Mexico is a country with a brutal income inequality, where the country’s tax burden in 2021 is only 14.7% of GDP (without social security contributions) when the average for Latin American countries is 17.9% and the average for Organisation for Economic Cooperation and Development (OECD) countries is 24.6% of GDP, a very significant difference of ten percentage points. In view of this, tax reform is essential, which in the first stage should seek to equalise with Latin American nations and in the second to come as close as possible to the OECD countries. JEL: H2: Taxation, subsidies and revenues; H3: Fiscal policies.

Authors and Affiliations

Jose Antonio Villalobos Lopez

Keywords

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  • EP ID EP721192
  • DOI https://doi.org/10.54536/ajebi.v2i3.1834
  • Views 79
  • Downloads 0

How To Cite

Jose Antonio Villalobos Lopez (2023). The Fiscal Reform Required for Mexico in 2025. American Journal of Environmental Economics, 2(3), -. https://europub.co.uk/articles/-A-721192