**Government Must Expand Taxpayer Base to Fund Social Programs**
The government needs to broaden its taxpayer base to secure sufficient funds for social programs, according to Sergio Octavio Vázquez Núñez, President of the College of Public Accountants of Baja California. Currently, the federal revenue is inadequate to meet growing needs, making it crucial to bring more individuals from the informal sector into the formal economy.
Vázquez Núñez suggests implementing incentives and simplified procedures to encourage businesses and individuals to formalize their operations. This strategic shift aims to create a more robust taxpayer registry, supporting the financing of essential social initiatives.
In response to the informal economy, which involves a significant percentage of the workforce, these changes could provide a more stable revenue stream for government obligations.
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**The Mexican Tax Debate: Addressing Informal Economy Challenges**
The Mexican government is facing significant challenges in combating an extensive informal economy. Recently, experts and economic organizations have emphasized the importance of expanding the taxpayer base to finance national programs effectively.
The Mexican government loses a significant amount of revenue due to the high level of informality, which can be up to 55% in sectors like commerce. This impacts its ability to fund essential services adequately. The tax administration has been focusing on regulating and tracking large cash transactions, especially in real estate, to curb money laundering and increase formal economic activity.
Efforts are underway to introduce smoother procedures and incentives to attract informal participants to the mainstream economy, thereby ensuring equitable growth and sustainable development. The idea is to make the transition to formality both appealing and accessible, potentially boosting the government’s financial capacity to invest in social welfare.
Local businesses and economic leaders are calling for these reforms to be a priority, aligning taxation policies with innovative efforts to formalize and strengthen the economy. This approach could lead to more comprehensive fiscal policies and a robust taxation infrastructure.
Stay updated with these developments as they unfold, as economic policies continue to adapt to balance growth and social responsibility.