Obrador's tax cuts for U.S. border region

[JohnAtronis + 78]

Mexican President Andrés Manuel López Obrador issued an executive order on Monday lowering taxes in municipalities along the U.S.-Mexico border. Can anyone see a point here?

[Joanna + 68]

dumb, just like Trump's

[Stephen + 67]

2 minutes ago, Joanna said:

dumb, just like Trump's

Right, the tax cuts are expected to cost the Mexican government billions of dollars in revenues. 

 

[Meanwhile + 49]

11 minutes ago, JohnAtronis said:

Mexican President Andrés Manuel López Obrador issued an executive order on Monday lowering taxes in municipalities along the U.S.-Mexico border. Can anyone see a point here?

point is they are making one of the biggest free zones worldwide. On US border

[李伟王芳 + 77]

7 minutes ago, Meanwhile said:

point is they are making one of the biggest free zones worldwide. On US border

better hurry, before the wall is built

[Stephen + 67]

22 minutes ago, JohnAtronis said:

Mexican President Andrés Manuel López Obrador issued an executive order on Monday lowering taxes in municipalities along the U.S.-Mexico border. Can anyone see a point here?

on job a few weeks and is already better at it than his US counterpart.

[Sefko Trafikant + 35]

22 minutes ago, Joanna said:

dumb, just like Trump's

not dumb at all

[Joanna + 68]

10 minutes ago, Sefko Trafikant said:

not dumb at all

This is to convince people not to commute to the US for work and not to go shopping over the border. Things are actually more expensive in Mexico than in the States and as a result, many middle class Mexicans go shopping over the border. AMLO wants to keep this money in Mexico.

[Illurion + 894]

13 hours ago, JohnAtronis said:

Mexican President Andrés Manuel López Obrador issued an executive order on Monday lowering taxes in municipalities along the U.S.-Mexico border. Can anyone see a point here?

Seems rather straight-forward to me.

What is along the Mexican side of the US / Mexican Border ?

answer:   A whole series of hundreds of MAQUILADORAS manufacturing plants on the Mexican side of the US / Mexican border,  that started opening in 1992 after NAFTA was approved.  (some were already there, but most opened after NAFTA)

Trumps TAX CUTS,  and ANNOUNCED TARIFFS,  along with his various INCENTIVES to bring "manufacturing" back to the USA are a danger to those plants.

In addition,  if there is an access interruption at the border due to illegal immigration,  much of what those plants make,  which are destined for the USA market,  would be stuck on the Mexican side.  Affecting sales.

In addition,  those MAQUILADORAS plants get special tax status under NAFTA.

I have not read anything about it,  BUT,  it might be possible that the new USMCA that replaces NAFTA may reduce or eliminate the special tax status of the those plants.

All of the above means that Trump has created an incentive for the owners of those MAQUILADORAS plants to SAVE money,  and MAKE money,  by shutting down on the Mexican side,  and moving to the USA side of the border.

Remember,  among Trumps INCENTIVES to bring manufacturing back to the USA are RAPID WRITE-OFF OF THE COSTS OF BUILDING NEW PLANTS.

If that is the case,   THEN WHAT CAN OBRADOR DO TO STOP THE LOSS OF THOSE PLANTS,  AND THEIR THOUSANDS OF JOBS ?

answer:   DO THE SAME THING TRUMP IS.   OFFER TAX CUTS AND INCENTIVES TO THE PLANT OWNERS TO CONVINCE THEM TO STAY....!

Edited January 2, 2019 by Illurion

[JoMack + 549]

Obrador has also increased the minimum wage. I see this as a big plus.   Billions flow from the U.S. to Mexico to help relatives.  If they can help themselves it's good for the U.S. and the people of Mexico.  I had my doubts about Obrador since he is far left, but it seems while watching the rest of the world in decline using socialist policies, i.e. France, Venezuela, etc., it's a good idea to free your people, your markets and build your economy.