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Fiscal Policy

Mexico, Land of Oligarchs

Tax Revenue Sources

Goods and Services: taxes levied on the production, extraction, sale, transfer, leasing or delivery of goods, and the rendering of services (mainly VAT and sales taxes). Property: recurrent and non-recurrent taxes on the use, ownership or transfer of property.

“The central goal of an establishment is to insure that the system works so that the country will in the long run be successful. An establishment is self-confident that if the system works and if their country does well, they will personally do well. Being self-confident they don’t have to make their own immediate self-interest paramount when they influence public decisions.

In contrast an oligarchy is a group of insecure individuals who amass funds in secret Swiss bank accounts. Because they think that they must always look out for their own immediate self-interest, they aren’t interested in taking the time to improve their country’s long-run prospects. They aren’t confident that if the country is successful, they will be successful.” — Thurow, Lester C. (1989), An Establishment or an Oligarchy?, National Tax Journal, 42:4, pp. 405-11