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...Monterrey may be getting less competitive, as is Mexico itself. The country needs tax enforcement, regulatory reform, a deregulated oil industry and agricultural reform--in the U.S. also--if it is to maximize the potential that NAFTA offers. If not, the U.S. can expect an even larger flood of new arrivals, to whom a fence installed by Congress may as well be made of cardboard...

Author: /time Magazine | Title: Mexico's Paradox | 11/13/2006 | See Source »

Pemex is now the government's cash cow, providing about 30% of federal revenues, a dependence that has torpedoed fiscal reform. Nonoil tax collection, as a percentage of GDP, is about 10%--about the same as in Haiti. Lopez Obrador's economic team calculated that an additional 2% to 3 % of GDP could be recouped with more rigorous tax collection, which would mean cracking down on rampant tax evasion--roughly at 50%--and the widespread abuse of legal but economically unjustified tax exemptions. "All businesses should pay tax without exemptions," says José Luis Barraza, president of the Consejo Coordinador Empresarial...

Author: /time Magazine | Title: Mexico's Paradox | 11/13/2006 | See Source »

...Vice President's upbeat comments about how tax cuts have stimulated an economic recovery show that he is totally out of touch with the reality of the average American. Then again, my job doesn't include the kind of raises and lifelong health-insurance benefits that our nation's leaders enjoy. Try living in our world, Mr. Vice President, and then tell us how optimistic we should...

Author: /time Magazine | Title: Letters: Nov. 20, 2006 | 11/12/2006 | See Source »

...parties have pledged to work together to develop alternative fuel sources. Look for more tax credits and subsidies to help companies develop green and renewable energy. The President, who said in his last State of the Union address that "America is addicted to oil," is scheduled to talk up hybrid and ethanol-powered flex-fuel cars this week. And his market-centric approach may find an ally in Michigan's John Dingell, the Democrat who will be in charge of the House Energy and Commerce Committee. Unlike many of his party colleagues, Dingell, a friend of his state's auto...

Author: /time Magazine | Title: Places For Progress | 11/12/2006 | See Source »

...According to one study, the difference between developing economies that observe the rule of law and economies that don't is a more-than-3% growth in GDP. There is a lot of room for improvement in Mexico's government and judicial practices. Second, I am considering reducing the tax rate in order to promote a tax system that is competitive with other developing countries, such as China. Third, we need to create more jobs to take advantage of the growing number of young people entering the workforce each year...

Author: /time Magazine | Title: Felipe Calderon | 11/12/2006 | See Source »

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