Newsletter 36: Tax Reform - May 2014

EDITORIAL

The first quarter of 2014 has just ended and the initial effects of the recent tax reform, in force as of this past January 1st, can now be seen.

The year has started up slowly and has been characterized by, among other things, an increase in prices, weak consumer spending, and a reduction in job creation. In fact, the International Monetary Fund and several other analysts have lowered growth expectations for the Mexican economy from 3.9 to 2.7 percent.

Under these circumstances, some specialists have raised their voices to argue that the tax reform was a mistake or, at best, insufficient. They presume that an effective reform that favored greater economic growth would have necessarily involved the lowering of tax rates and the combating of tax evasion.