Mexico fiscal history and the evolution of tax coordination

An analysis of Mexico's fiscal history highlights the long-standing challenges regarding public spending, income concentration, and regional inequality, particularly in southern states. The discussion reflects on a proposed fiscal pact from 26 years ago aimed at addressing issues such as formal employment deficits, poverty, and the lack of industrial promotion policies.

Key historical milestones mentioned include the reduction of special taxes between 1980 and 1990, the implementation of competitive corporate income tax rates, and the creation of the National System of Fiscal Coordination to better distribute revenue among states and municipalities. The establishment of the Tax Administration Service (SAT) is also noted as a fundamental component for federal governance.