Redistributive Impact and Efficiency of Mexico’s Fiscal System
نویسنده
چکیده
A comprehensive tax and benefit incidence analysis is presented covering the redistributive fiscal instruments implemented in Mexico in 2008 and 2010, representative of the urban and rural sectors, as well as nationally. The expansion of basic social programs and effectively targeted direct monetary transfers have increased the progressivity of Mexico ́s fiscal system in recent years, but redistributive impact is limited by a comparatively ineffective tax system and a significant share of resources tied to instruments with limited redistributive effectiveness, including subsidies to contributory social security systems, large exemptions in direct and indirect taxes, energy subsidies, and access to public tertiary education. The transition to a more effective and equitable fiscal system will require a comprehensive tax-benefits reform designed to improve tax productivity and benefit equity, combining a broad tax base with universally accessible public services and social protection.
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