Monday, September 14, 2009
One key element of Calderón's fiscal plan that I didn't mention (and which surprisingly didn't receive a huge amount of attention, Milenio aside) is the 2 percent consumption tax. It has united a variety of different voices in opposition, from the leftist bunch who came out against the plan last week, to the more technocratic analysts at the Tec de Monterrey. (Yes, I recognize that I am drawing something of a false distinction between "leftist" and "technocratic", but you know what I mean.) For both groups, the essence of the objection is the same: it is disproportionately hard on the poor.