Sunday, February 25, 2024

13 families have accumulated wealth and have the tools to avoid taxes

Within the framework of the World Economic Forum in Davos, 20 organizations from Mexico joined a global protest to demand a tax on the wealth of billionaires, a select group of which 13 Mexican families are part.

Meanwhile, 260 billionaires and millionaires demanded the political elite gathered at the Davos World Economic Forum (WEF) that you enter wealth tax To help pay for better public services, in Mexico, people who have increased their wealth by inheriting multimillion-dollar fortunes are not required to contribute to public spending, so 20 organizations are asking that IT select the group of 13 families that concentrate the nation’s wealth and pay a tax on their wealth.

“In Mexico there are 13 millionaire families who have their mechanisms to avoid taxes, recently it was said that Elektra has a whole issue with SAT, so from the Alliance we believe it is important that they do not it’s all tax avoidance mechanism,” he said. In an interview via zoom Aline Zunzunegui, coordinator of the Alliance against Inequality Mexico, an organization that promotes the #QueLosRicosPaguen campaign.

13 Families Have Accumulated Wealth And Have The Tools To Avoid Taxes
Carlos Slim And Germán Larrea Are Two Of The Richest People In Mexico. Image: Moisés Pablo, Cuartoscuro.

The demand that the rich pay taxes on their wealth emerged worldwide in 2016 through the movement Fight Inequality (fight against inequality), and currently more than 30 countries have participated, including Mexico, where organizations such as Fundar, Alliance against Inequality Mexico, and Nuestro Presupuesto criticize that becoming a millionaire in the country is “too cheap” if you compare with others.

According to the report “Paying a Great Fortune, which was made in 2022 by Fight Inequality, there are 13 billionaires in Mexico who have increased their wealth during the pandemic, and if the government taxes them on that wealth, it will raise enough money to allocate it to sectors such as health and education.

According to the data, the billionaires in Mexico are like Carlos Slim Helú, Ricardo Salinas Pliego, or Germán Larrea Mota Velasco They pay taxes at less than 35 percent of their income, but the rich in other countries are taxed at higher rates: New Zealand (36 percent), Senegal (40 percent), the United Kingdom, South Africa, Germany, Japan (45 percent), Spain (47 percent), and France (49 percent).

Although some wealthy Mexicans pay taxes on their income, like other citizens, they do not do so on their wealth, that is, on inheritances.

“It is important that in Mexico a tax is created on the wealth of billionaires as it has happened in other countries, and another one of our demands is that tax havens do not exist,” shared Aline Zunzunegui.

13 Families Have Accumulated Wealth And Have The Tools To Avoid Taxes
Carlos Slim Is The Richest Man In Mexico. Image: Mario Jasso, Cuartoscuro

Within the framework of the World Economic Forum in Davos, which brought together the world’s political and economic elite this week, 260 millionaires and billionaires sent them a powerful message: “The true measure of a society is found not only in the way it is treated weakest, but in what it demands of its wealthiest members.

Through an open letter titled “Proud to Pay” and signed by wealthy people from 17 countries, such as Abigail Disney, heiress of Disney, and Valerie Rockefeller, heiress of the American dynasty, they emphasize that inequality has reached a tipping point and action is needed now.

“Our request is simple: we ask that we, the richest in society, be taxed,” asked the group of rich people who make up the Patriotic Millionaires movement of world leaders. “It will not fundamentally change our standard of living, deprive our children, or harm the economic growth of our countries, but it will be excessive and unproductive private wealth that is an investment in our common democratic future.”

The proposal of these 260 billionaires, which until now has not been signed by any Mexican millionaire, was celebrated by organizations that fight inequality, using it as a reference to demand that governments tax the wealth of the richest.

On January 18, 20 organizations from Mexico joined a worldwide protest to demand a wealth tax, no tax havens, the cancellation of foreign debt, and that more national budgets be allocated for public service.

13 Families Have Accumulated Wealth And Have The Tools To Avoid Taxes
Demonstration By Mexican Organizations To Demand A Wealth Tax. Photo: Alliance Against Inequality.

Unlike other countries, in Mexico, people who increase their wealth by inheriting multimillion-dollar fortunes are not obliged to contribute to public spending because the Income Tax (ISR) law establishes that no tax shall be paid for the acquisition of inheritances. , an exemption with privileges. people with more resources and one of the explanations for the low tax collection that has historically characterized the State of Mexico, organizations like Fundar highlight.

However, this was not always the case: in the post-revolutionary period and until 1961, the federation and the states implemented various schemes to ensure that the intergenerational transmission of wealth was taxed.

One of the proposals made by organizations such as Fundar and Alianza contra la Inequality México consists of replacing the current exemption, equivalent to all inherited assets, with an exempt limit of 8 million pesos, which will only affect 1 percent of the country’s richest population.

13 Families Have Accumulated Wealth And Have The Tools To Avoid Taxes
Morena Representatives Signed An Initiative To Reform Article 31 Of The Political Constitution And Include The Term Tax Development. Photo: Morena.

In June last year, deputies Manuel Vázquez Arellano, Jorge Alberto Barrera Toledo, Aleida Alavez Ruíz, María Clemente García Moreno, and Marisol García Segura signed an initiative to reform Article 31 of the Political Constitution to include the term tax progressivity, which consists of a fair distribution of tax burdens so that large taxpayers pay according to their level of income. That is, those who earn or have the most compensation.

The initiative of the group of Morenoist deputies is in the Constitutional Points Commission, and there is no date for it to be discussed.

“At some point, they want to open the conversation from Congress because this initiative provides for a change in article 31 to talk about development, but the initiative is in the Commission of Point of the Constitution,” explained Aline Zunzunegui, coordinator of the Alliance against Inequality Mexico. “We will continue to insist on pursuing the issue.”Journalist with over a decade in digital media. Edits and writes on the topics of economics, corruption, politics, human rights

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