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Many upset in Mexico with tax increase

(Sales taxes are going up across the border)…Many are not happy.

The Mexican Senate this week approved the 5% sales tax increase in the border regions of Mexico. This brings the tax in line with the rest of the Country. A uniform sales tax will be implemented January 1st across Mexico. Critics, mostly businesses leaders, say the increase will drive more people to make their purchases across the border in the United States. They say local Mexican business will suffer. A state secession movement has even been organized. This week’s action is part of a broad tax reform package spearheaded by President Enrique Pena Nieto. The President says he wants to boost the government’s revenue and reduce economic inequality by creating an unemployment fund and greater financial support for education and infrastructure projects.