Mexico`s Rich Don`t Like To Pay Taxes – They Think You Should
by Brenda Walker]
loser, mooch, social basket case, criminal narco-state:
these are Americans` mental pictures of Mexico.
But more than any other, the
image is one of staggering poverty. Anyone who has
been to a Mexican border town is immediately overwhelmed
by the Third World – the oppressive dirt, decay, too
many underfed children.
However, the truth is that Mexico
very wealthy country. It is blessed with
abundant natural resources and a fortunate location.
Mexico is the richest nation in Latin America when
measured by GDP, and by a wide margin: in 2001,
Mexico`s GDP was the highest in Latin America, a
substantial 22.5 percent more than runner-up Brazil.
When GDP per capita is the gauge,
Mexico is second only behind Argentina.
Half of all
Latin American billionaires, 11 out of 22, are
But Mexico is not poor overall. It
has the resources to improve itself.
Economist Gary Hufbauer of the
Institute for International Economics recently noted
that Mexico has
tax collections that amount to only 14 percent of
the country`s gross domestic profit, compared with the
U.S. level of 25 to 28 percent.
Hubauer`s conclusion: "Basically
wealthy classes do not want to tax themselves,
Hufbauer further remarked:
social services and infrastructure are awfully lean for
a country that wants to move ahead. While I`m not
usually an advocate for larger government, Mexico is a
country where public investment, done wisely, could pay
Arguably, with adequate taxation of
its freeloader rich, Mexico could follow the example of
the Asian tiger nations and invest its way into economic
progress by building industrial infrastructure and
educating its workforce. The recent
loss of Mexican jobs to China was partially due to
the lack of capital spending on education, ports, roads
and industrial parks.
But investment would cost money.
And Mexico refuses to take responsibility for the social
needs of its population. It`s so much easier to
let the Americans care for Mexico`s poor.
Indeed, the Mexican
propaganda war to convince Americans of the need to
support poor Mexico has been largely successful.
Washington`s current degree of
solicitude for the
well being of Mexicans is quite astonishing,
particularly at a time when
Americans are suffering the highest unemployment in
nine years. Congress and the President are considering
various welfare packages for Mexico; such as Sen.
"guest worker" plan (where the
"guests" never leave).
On July 10, the Senate passed a
bill to provide $100 million in microloans for the
poorest regions of Mexico. It`s stunning that Congress
would vote to provide financial aid to wealthy Mexico
when 47 U.S. states have severe budget deficits and
federal red ink is the highest ever.
Central to Mexican strategy is
maintaining the billions of dollars in
remittance money flowing south, thereby keeping a
lid on social unrest among the masses. In that way, the
oligarchy preserves its enormous power and riches.
The immigration scam is very
successful: the rulers export their unemployment to the
United States and get back billions in remittance cash
annually— 2003 is on track to rack up a record $11
Talk about easy money: the worse
the oligarchy run the country, the more people leave and
send back money.
Furthermore, every social service
for illegal aliens and legal immigrants financed by the
college tuition breaks,
housing vouchers and food stamps—frees up more money
Recent surveys show half of Latino
immigrants send money home, with a monthly average
amount of $250.
Mexico`s propaganda effort is
helped enormously by the
annual carnage of unprepared walkers who die in the
desert as they illegally cross into the U.S.
Predictably, the May
death of 19 people in an
unventilated truck in Texas incited
anti-borders extremists to pile blame on American
Mexico would prefer that all
its excess workers could cross an
unenforced border to keep remittance dollars
smaller investment could bring our
southern border under control and would lower the
threat of terrorists entering there. The expanding
power of lawless elements in Mexican society, e.g. narco-traffickers,
must be recognized as a security threat – particularly
with recent reports of
Mexican drug cartels and terrorists, including
al Qaeda. Border control is now
critical to national security.
There`s no reason why Mexico cannot
evolve from being a parasite state into an adult nation.
optimistic when opposition party candidate Vicente
Fox won the presidency.
But the Fox administration has only
displayed more of the same tiresome dependence.
Apparently the current system is
just too easy and profitable for the insatiable ruling
Tough immigration enforcement from
the United States is the only way to force Mexico to get
its act together.
If Mr. Bush
still thinks of Vicente Fox as his good friend, the
President will help wean his pal from the distasteful
immigration addiction that keeps Mexico mired in the
Tough love – border and
interior enforcement – is the true expression of