Goshen News, Goshen, IN

Z_CNHI News Service

October 17, 2013

Tax bill with junk food levy advances in Mexican Congress

MEXICO CITY — Mexico's lower house finance committee Thursday approved changes to a bill to raise taxes, including a new levy on junk food, as President Enrique Pena Nieto's party joined with an opposition party to advance his reform.

The committee voted 30-12, with one abstention, to approve a modified version of Pena Nieto's proposal, increasing the top income tax rate to 35 percent and adding a 5 percent tax on high-fat foods, according to a draft of the bill. The bill goes to full lower house debate as soon as Thursday.

Pressure from lawmakers caused the Pena Nieto administration to strip out sales taxes on private education tuition, mortgage interest and home rentals from the original proposal. A junk food tax would help make up the shortfall, although it's taking a toll on food companies such as Grupo Bimbo, the world's largest baker, and Gruma, the world's biggest tortilla maker.

"This won't be easy" on companies, Carlos Hermosillo, a stock analyst with Grupo Financiero Banorte, said in an emailed response to questions. The tax on items containing 275 kilo-calories per 100 grams "would include many products."

Lawmakers from the National Action Party, the biggest opposition group in Congress, opposed the bill after Pena Nieto's Institutional Revolutionary Party, or PRI, refused to drop its plan to increase the sales tax in states that border the U.S., including traditional strongholds for the party known as PAN.

A higher tax rate for top earners and duties on high-fat foods were proposals pushed by the Democratic Revolution Party, or PRD, the second-largest opposition group.

"The strategy of the government is very clear: they're bringing in the PRD and they're giving certain concessions in order to get their votes," Benito Berber, a strategist at Nomura Holdings, said in a telephone interview from New York. "This is a victory for the president and the finance minister. They found an ally that allows them to pass a not-so- diluted fiscal reform."

Under the plan approved last night, the maximum income tax rate would increase to 35 percent for people making more than 3 million pesos ($235,000), to 34 percent for those making more than 1 million pesos, 32 percent for more than 750,000 pesos in annual income and 31 percent for more than 500,000 pesos.

The current top income tax rate is 30 percent. Pena Nieto had proposed increasing the top tax rate to 32 percent for more than 500,000 pesos in income.

The lower house finance committee is still debating next year's budget, and the full chamber has a deadline of Oct. 20 to pass the revenue portion of the budget.

The fiscal bill that Pena Nieto presented on Sept. 8 would have increased tax revenue by 1.4 percentage points of gross domestic product in 2014 and 2.9 percentage points by 2018.

While the changes backed by the committee last night may raise less than that since some proposed taxes were removed, the duties supported by the PRD will help compensate, Nomura's Berber said.

        

1
Text Only
Z_CNHI News Service
  • Lindley, Tom.jpg Is this a commercial for batting gloves or a baseball game?

    Major league baseball desperately needs to speed up the action. Here's a place to start: Nix the mind-numbing ritual of hitters who first adjust the right batting glove, then the left one, after every single pitch.
     

    August 21, 2014 1 Photo

  • The Simpsons still going strong

    The groundbreaking animation first hit the air Dec. 17, 1989, but the family first appeared on television in "The Tracey Ullman Show" short "Good Night" on April 19, 1987.

    August 21, 2014

  • Police chief resigns over racial slur repost to Facebook

    A repost on his personal Facebook page of a racially-charged comment by the original poster of a comedy video has forced the police chief of an Oklahoma city to resign his office.

    August 21, 2014

  • Does Twitter need a censor?

    Twitter decided last year to make images more prominent on its site. Now, the social network is finding itself caught between being an open forum and patrolling for inappropriate content.

    August 21, 2014

  • sleepchart.jpg America’s sleep-deprived cities

    Americans might run on sleep, but those living in the country's largest cities don't appear to run on much.

    August 20, 2014 1 Photo

  • Who should pay for your kids ACT?

    Thirteen states paid for 11th-grade students in all public high schools to take the ACT college admission test this year, with several more planning to join them in 2015.

    August 20, 2014

  • Pets.jpg Why do people look like their pets?

    As much as we might quibble over the virtues and vices of Canis domesticus, however, and over whether human nature is any better or worse than dog nature, even dog fanciers don't usually want to look like a dog.

    August 20, 2014 1 Photo

  • Lindley, Tom.jpg Another stumble begs questions about Notre Dame

    Notre Dame's vaunted reputation for formidable athletics and serious academics is again sullied by a cheating scandal. Maybe the high standards of the Fighting Irish are just too good to be true.

    August 19, 2014 1 Photo

  • Ice bucket challenge trending up

    Internet trends are a dime a dozen these days. Everything from Tebowing to planking to the cinnamon challenge can cause a wave of social media activity that can last for weeks before fizzling out.

    August 19, 2014

  • Five myths about presidential vacations

    In the nuclear age, presidents may have only minutes to make a decision that could affect the entire world. They don't so much leave the White House as they take a miniature version of it with them wherever they go.

    August 15, 2014

Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
AP Video
US: We Do Not Pay Ransom to Terrorists Ferguson Teachers Training to Deal With Trauma Jon Hamm on the Unrest in Ferguson Tit for Tat? McDonald's Shuttered in Moscow Life on the Professional Video Game Circuit TX Gov Perry in Washington: 'Confident' in Case Hospital Releases Two Missionaries Who Had Ebola Ramen Health Risks: The Dark Side of the Noodle NYC Doctor-in-chief Seeks Community Approach Indonesian Police Fire Tear Gas at Protesters Raw: Shots Fired in Liberian Shantytown DOJ, Bank of America Reach Record Settlement Raw: Cubavision Airs Images of Fidel Castro Raw: Grief After Deadly Airstrikes in Gaza Officer Who Pointed Gun at Protesters Suspended Kathy Griffin Challenges Minaj to 'a Booty Off' Johnson: Six Arrests, No Tear Gas in Ferguson Raw: Rescue, Relief Efforts at Japan Landslide Cadavers, a Teen, and a Medical School Dream California Drought Stings Honeybees, Beekeepers
Poll

Three Goshen elementary schools — Chandler, Chamberlain and West Goshen — are providing free meals to all students during the school year as part of the U.S. Department of Agriculture’s Community Eligibility Provision of the Healthy Hunger-Free Kids Act of 2010. Nearly 80 percent of students at Chandler, 89 percent of students at Chamberlain and 78 percent of students at West Goshen already qualify for free or reduced-price lunches based on their family income. How do you feel about the new lunch program?

I think it’s a good idea to feed all the students free of charge
I think those who can afford it should pay for their school meals
I think all students should be required to pay for their school meals
     View Results