Mexico: Tax on Cash Deposits and 2007 Fiscal Reform, taking on the informal Sector?

Abstract

This article takes as reference the approval of the Cash Deposit Tax as a way to give us a chanceto understand the problem it represents in terms of fiscal finance. There are ample economic unregulated activities upon which the government imposes taxes. We ask: What does it mean and why it is decided to use an indirect tax mechanism on cash deposits to levy more money in a 2007 political context?