Fiscal Reform

1. Fiscal Reform Unemployment Insurance Universal Pension An unemployment insurance will be created for all the workersof the formal sector. It will be equivalent to a month of minimum wage and will be given for the first six months. This insurance will be financed through the patronal contributions linked to the formal employment. All old aged Mexican citizens will have a minimum income to cover their basic living expenses. People over 65 years that have a monthly income equal or lower to fifteen minimum wages can request this pension. Primary Objectives: Investment in the education sector Infrastructure Investment The Scholarship National Program will be improved and more budget will be assigned to the development of science and technology. More resources will be invested to national industries like PEMEX and the CFE. The State will also invest in hydric and hospital infrastructure, as well as in highways and public transportation. Key points: No VAT for food or medicine VAT stays at 16% but it will be now applied to the borders too. Banking Utilities: It is proposed to tax the utilities gained by the Stock Market with a 10%. ISR: It will remain at 32% as long as the income of the natural person is of 500,000 pesos or more per year. People with lower income will continue to pay the 30%. Disappearance of taxes: New taxes: Flat Tax on Business(IETU), and the Tax on Cash Deposits (IDE). Gasoline price growth is lowered but not removed Increment in the VAT for: Dog and cat food, buying a pet, public shows and selling or renting a house.