The inheritance tax in Mexico City could change drastically if it is authorized to charge taxes on 'multimillionaire' inheritances starting from 15 million pesos. This proposal, driven by deputy Víctor Varela of the Green Party, suggests that heir recipients who receive an estate equal to or greater than this value would be subject to income tax.
Varela argues that it is necessary to tax the 'super-rich' because Mexico is lagging in tax collection compared to other economies in Latin America and the Caribbean. He proposes that a federal tax on large fortunes could generate up to 270 billion pesos a year. He also highlights that individuals with annual incomes exceeding 500 million pesos represented only 0.03% of the total tax revenue.
The deputy stated that the proposal aims to debunk three common myths about taxes on large fortunes in Mexico: that the rich earned their fortune through hard work, that they already pay enough taxes, and that it would not be possible to implement wealth taxes in Mexico. Furthermore, he mentioned that if the reform is approved, the PAN will file legal actions to prevent families from paying inheritance taxes.
On the other hand, Diego Garrido of the National Action Party considered this initiative a 'blow' to middle-class families, pointing out that the law currently exempts individuals from paying income tax in these cases. He criticized that large companies pay effective income tax rates far below what the law establishes and that these fiscal changes could harm families.
In summary, the discussion on the inheritance tax in Mexico City continues to generate controversy among different political parties, while the possibility of taxing large fortunes is raised to increase revenue and promote a fairer and more equitable tax system.
