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Contribución de las remesas a los ingresos públicos en México
[Contribution of remittances to public income in Mexico]

Author

Listed:
  • Lozano-Ascencio, Fernando
  • Huesca, Luis
  • Valdivia, Marcos

Abstract

it is understood that Mexican migrants working in the United States pay taxes in the local Mexican economy via the purchases made with family remittances, but specialized studies on migration and development have largely ignored the contribution of remittances to the country's public coffers. Based on the hypothesis that a significant part of the contribution to public revenues comes from indirect taxes, this section estimates remittances’ contribution to Mexican public income by quantifying how much VAT income was collected as a result of remittances that were sent from the United States. We aim to respond to the following questions: How much Value Added Tax was collected from purchases made with remittance money and how has this contribution changed between 2006 and 2008? How important is this contribution when compared with other sources of public revenue such as petroleum exports or income tax? What is fiscal charge of Mexican households that receive remittances when compared with those that do not? Do poor families that receive remittances pay more in taxes than poor families that do not receive remittances? Is public spending received by households with remittances socially fair?

Suggested Citation

  • Lozano-Ascencio, Fernando & Huesca, Luis & Valdivia, Marcos, 2010. "Contribución de las remesas a los ingresos públicos en México [Contribution of remittances to public income in Mexico]," MPRA Paper 27789, University Library of Munich, Germany, revised 01 Jan 2010.
    • Handle: RePEc:pra:mprapa:27789
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    References listed on IDEAS

    as
    1. -, 2009. "Crisis, volatilidad, ciclo y política fiscal en América Latina," Libros y Documentos Institucionales, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 2921 edited by Cepal.
    2. Levy, Santiago, 2009. "Buenas Intenciones, Malos Resultados," Finanzas Públicas, Centro de Estudios de las Finanzas Públicas, H. Cámara de Diputados, vol. 1(1), pages 165-200.
    3. Dilip Ratha & Sanket Mohapatra, 2009. "Revised Outlook for Remittance Flows 2009?2011 : Remittances Expected to Fall by 5 to 8 Percent in 2009," World Bank Publications - Reports 10990, The World Bank Group.
    4. Dilip Ratha & Sanket Mohapatra & Ani Silwal, 2009. "Outlook for Remittance Flows 2009-2011 : Remittances Expected to Fall by 7-10 Percent in 2009," World Bank Publications - Reports 10975, The World Bank Group.
    5. Taylor, J. Edward & Mora, Jorge, 2006. "Does migration reshape expenditures in rural households? Evidence from Mexico," Policy Research Working Paper Series 3842, The World Bank.
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    More about this item

    Keywords

    migración internacional; remesas; política fiscal; desarrollo; México;
    All these keywords.

    JEL classification:

    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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