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Author: Subject: Mexican Senate approves 16% border VAT tax
monoloco
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[*] posted on 10-31-2013 at 03:12 PM


Quote:
Originally posted by shari
You would be surprised by the little things that guests dont want to pay for. We had a guy a few days ago that when I told him he needed the $5 biosphere reserve bracelet, he said he would rather leave right now than pay that....sheesh.
We have lost clients over $5 before.

Also where people used to be paid in cash, the bank card system has replaced that....mostly so that the payroll trucks arent going to be assaulted.

The fishermen at the coop already pay a ridiculous 35% in income tax.

this tax will be really devastating for the middle class and small business operators.
Shari, Do they actually PAY 35% or is that before all the things they can write off or collect under the table?



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puzzled.gif posted on 10-31-2013 at 03:22 PM
Oh yeah


Quote:
Originally posted by Bajaboy
I read some where that Mexico has one of the lowest tax collection rates in the world. With that said, it sounds like it's time to pay the piper. While probably not fair to many, the bills need to paid by someone.


Raise taxes because the government can't get it's tax collection machine in good working order.....make perfect sense to me. :?:




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[*] posted on 10-31-2013 at 03:36 PM


Quote:
Originally posted by shari
We have lost clients over $5 before.



You didn't lose anybody or anything. Just say thank you.... bye bye....don't come back.




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DENNIS
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[*] posted on 10-31-2013 at 03:43 PM


Quote:
Originally posted by monoloco
[Shari, Do they actually PAY 35% or is that before all the things they can write off or collect under the table?



A point well made. Mexico still has the "Six Tequila Lunch" right-off.....just like Regan stopped in the states.


Two best jobs in Mexico:

1- Commissioned officer in the military

2- Creative Contador/Accountant.




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[*] posted on 10-31-2013 at 05:03 PM


Third best job in Mexico: Notario.
Fourth best job in Mexico: Bartender at a resort


Much of the following is incorrect.

Quote:
David K
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[Edited on 11-1-2013 by MitchMan]

[Edited on 11-11-2013 by BajaNomad]
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DENNIS
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[*] posted on 10-31-2013 at 05:11 PM


Quote:
Originally posted by MitchMan
Third best job in Mexico: Notario.

I believe they're appointed by the power........much in line with power staying in power by controlling power.




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rts551
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[*] posted on 10-31-2013 at 06:00 PM


Bottom line for Baja. Residents and tourists alike are demanding more services. How do you propose to pay for these services. Asuncion wants a repaved road...maybe they need an assessment district? Another words they can pay for their own road. would that be cheaper?

Myself, I will keep paying without a b-tch and hope the services keep improving.
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[*] posted on 10-31-2013 at 06:08 PM


Shari, Pls clarify. I just talked to a coop member in Abreojos. They seem to feel that each individual member is NOT taxed at 35%. There is a corporate tax of 35% tat the coop pays on profits.


Quote:
Originally posted by shari
You would be surprised by the little things that guests dont want to pay for. We had a guy a few days ago that when I told him he needed the $5 biosphere reserve bracelet, he said he would rather leave right now than pay that....sheesh.
We have lost clients over $5 before.

Also where people used to be paid in cash, the bank card system has replaced that....mostly so that the payroll trucks arent going to be assaulted.

The fishermen at the coop already pay a ridiculous 35% in income tax.

this tax will be really devastating for the middle class and small business operators.
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DENNIS
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[*] posted on 10-31-2013 at 06:15 PM


Quote:
Originally posted by rts551
Bottom line for Baja. Residents and tourists alike are demanding more services. How do you propose to pay for these services. Asuncion wants a repaved road...maybe they need an assessment district? Another words they can pay for their own road. would that be cheaper?

Myself, I will keep paying without a b-tch and hope the services keep improving.


Those who benefit from improvements should foot the bill. That includes income tax.
The market will establish need and cost. Let it ride.
If a new road doesn't show returns on investment, in the way of increased revenue, then it was poorly planned and thought out....most likely from a personal gain standpoint.

Welcome to the real world.




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rts551
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[*] posted on 10-31-2013 at 06:36 PM


That being said, should all roads be toll roads then? Who should pay for the biosphere and its protection. Protecting the fishery, etc?

Pay as you go/use has some appeal to some but is very regressive and very seldom moves things forward at a fast pace (lack of investment in public infrastructure).

Quote:
Originally posted by DENNIS
Quote:
Originally posted by rts551
Bottom line for Baja. Residents and tourists alike are demanding more services. How do you propose to pay for these services. Asuncion wants a repaved road...maybe they need an assessment district? Another words they can pay for their own road. would that be cheaper?

Myself, I will keep paying without a b-tch and hope the services keep improving.


Those who benefit from improvements should foot the bill. That includes income tax.
The market will establish need and cost. Let it ride.
If a new road doesn't show returns on investment, in the way of increased revenue, then it was poorly planned and thought out....most likely from a personal gain standpoint.

Welcome to the real world.
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BajaNews
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[*] posted on 11-10-2013 at 11:33 PM
Tijuana residents protest sales tax hike


http://www.utsandiego.com/news/2013/nov/10/tax-sales-mexico-...

By Sandra Dibble
NOV. 10, 2013

TIJUANA — A protest against Mexico’s newly approved sales tax hike for border areas brought several dozen drivers to steer through Tijuana’s streets on Sunday afternoon. The “Caravan of Repudiation” ended an hour after it started, with collective honking outside the municipal office of Mexico’s ruling Institutional Revolutionary Party, the PRI.

The demonstration was the latest show of discontent in Baja California following legislative approval last month of a 5 percent sales tax increase for border areas — from 11 percent to 16 percent. Set to go into effect on Jan. 1, the measure ends the lower rate for areas of the country considered border regions, and creates a uniform sales tax for all of Mexico.

“We’re a state that they don’t take into account,” said Blanca Gutierrez, a 36-year-old housewife driving with her son, niece and two siblings. “We feel overlooked,” said Diana Rodriguez, a 44-year-old engineer in a maquiladora plant, who participated with her husband and their 10-year-old daughter.

The increase is part of a sweeping fiscal reform package championed by Mexican President Enrique Peña Nieto, and passed in Mexico’s Congress with support of the PRI and its allies. The change would end more than three decades of differential treatment for border zones, which include the entire states of Baja California and Baja California Sur, a 12.5-mile zone that runs along Mexico’s northern border, and parts of the states of Chiapas and Quintana Roo on the southern border.

The PRI’s leader in Tijuana, Jose Luis Hernandez Silerio, said the reform would offer new unemployment benefits and pensions for the elderly. He mentioned the possibility of greater federal funding for the border. “We all want a border that’s more competitive, border crossings that are more agile,” he said.

But political and business leaders in Baja California argue the state needs the special tax treatment because of its geographic location next to California. They warn that the tax hike will push up prices in the state and drive growing numbers of consumers to cross the border to shop in California, where the base sales tax is 7.5 percent. On Monday, top private sector leaders in Baja California who are calling for collective legal action against the tax increase are expected to meet with attorneys and tax experts to determine the precise legal strategy.

Many of the participants in Sunday’s protest said they learned of it through social media. The event was promoted through a Facebook page, “Republica de Baja California,” which advocates secession from Mexico and has gathered more than 136,000 followers since Oct. 14.

The authors of the page have not made their identity public, saying through a statement that they are “a horizontal collective of dissatisfied citizens” who have no links to any political party, business or labor groups.

No one publicly took charge of Sunday’s protest, and one man who appeared to be an organizer, passing around white shoe polish and writing messages on car windows, declined to be interviewed.

For all their opposition to the measure, no political or business leaders showed up. The demonstrators seemed to be largely working members of Baja California’s middle class, who said they would be affected by the tax hike.

Secession from Mexico “seems to be a bit of an extreme position,” said Juan Madrigal, a 44-year-old graphic designer who participated in the protest. But he echoed the feelings of participants: “I am unhappy with the lack of representation that we have in the region.”




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[*] posted on 11-11-2013 at 09:25 AM
La Paz


A few years back La Paz was a duty free port and you could some great deals on swiss army knifes,,car stereos,,home stuff..and a mess of stuff that wasn't avable any where else. Cheap!!...when that changed ,,,so did La Paz..........
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[*] posted on 11-11-2013 at 10:20 AM


Quote:
Originally posted by captkw
A few years back La Paz was a duty free port and you could some great deals on swiss army knifes,,car stereos,,home stuff..and a mess of stuff that wasn't avable any where else. Cheap!!...when that changed ,,,so did La Paz..........
Yeah, like the genuine Rolex I once bought there for 200 pesos that I had to keep changing the battery in.:lol:



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[*] posted on 11-11-2013 at 10:45 AM


28 states in Mexico have been paying 16% for years, it's about time Baja California, Baja California Sur and Quintana Roo start paying like everyone else...

Mainland Mexico pays 12.2 Pesos per litro of magna while the 3 frontera states probably pay about 11.71 per litro of magna , do you think 4 US cents a gallon will stop the economy in Baja and QR?

Does anyone remember when the Peso devaluated, where an average Mexican lost 1/2 there savings overnight, they survived........and will continue to survive after this small tax increase ........

[Edited on 11-11-2013 by bajagrouper]




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DENNIS
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[*] posted on 11-11-2013 at 10:53 AM


Quote:
Originally posted by bajagrouper


Does anyone remember when the Peso devaluated, where an average Mexican lost 1/2 there savings overnight, they survived........and will continue to survive after this small tax increase ........



They only lost Peso value when compared to the dollar. It hurt the American economy more than Mexico because imports were out of reach.......which helped the economy in Mexico because consumers were forced to stay within the domestic market.

Every cloud of sheeit has a silver lining.




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durrelllrobert
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[*] posted on 11-11-2013 at 11:06 AM
Don't forget that electric, telephone and propane prices are affected too


5% increase on my average CFE bill of 2,500 pesos = 125 pesos



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[*] posted on 11-11-2013 at 11:12 AM


Quote:
Originally posted by bajagrouper


the 3 frontera states probably pay about 11.71 per litro of magna , do you think 4 US cents a gallon will stop the economy in Baja and QR?

[Edited on 11-11-2013 by bajagrouper]


actually the Nov. price is 11.78/litro (going up in Dec) and 11.78 x .05 x 3.78 litro/gal = 2.23 pesos that at 12.5 p/$ = 18 cent increase

[Edited on 11-11-2013 by durrelllrobert]




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[*] posted on 11-11-2013 at 11:17 AM


Still less than 42 centavos a gallon difference, and gas goes up every month! 42 centavos is about 3 US pennies a gallon difference...

So you can't afford $10 a electric bill or $5 a month... $2500 Peso bill, looks like you should cut down on your usage...

Also the exchange rate where I am is 13.23 x$1

[Edited on 11-11-2013 by bajagrouper]

[Edited on 11-11-2013 by bajagrouper]




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[*] posted on 11-11-2013 at 11:36 AM


It's almost ridiculous that Baja Sur was considered a "border state" while Sonora, Chihuahua are not. THAT was unfair, if you want to talk about fairness.



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[*] posted on 11-11-2013 at 11:40 AM


Quote:
Originally posted by Hook
It's almost ridiculous that Baja Sur was considered a "border state" while Sonora, Chihuahua are not. THAT was unfair, if you want to talk about fairness.


Cabo San Ludicrous is bordered on insanity.




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