The Day at a Glance | September 13 2021

The Top

*Democrats will propose increasing the corporate tax rate to 26.5% in order to finance Biden`s economic plan.

*A fiscal reform is not necessary; collecting from large informal businesses would be enough: Raquel Buenrostro, SAT.

*The Ministry of Finance proposed decreasing profit-sharing rights at PEMEX from 54% to 40% in order to back the company in 2022.

Economic environment

Democrats are preparing a tax increase. Democrats in the House of Representatives will present a proposition to increase the corporate tax rate to 26.5% (from 21%), figure below the 28% proposed by Joe Biden to fund his economic plan. Additionally, the capital gains tax would increase to 25% (from 20%) and not to 39.6% as the Executive power had originally proposed. These changes have been carried out with the intention of gaining support from moderate Democrat legislators, who consider that a strong increase in taxes could be counterproductive. With the new propositions, collection is estimated at 2 trillion dollars, and will be debated on tomorrow in committees in the House of Representatives. The proposition includes general rules regarding crypto currencies and a lower taxes for businesses with revenues under 400 thousand dollars.