IVA Tax?

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dons2346

Guest
What is the scoop on this 16% tax? Some businesses charge and some don't. I heard it was a tax on meat then a tax on everything.

Anyone know what the real reason for the tax is?
 
mexicoruss

mexicoruss

Lovin it in RP!
As a resident I pay almost nothing as far as Income tax. The IVA is a tax on everything you consume. If you consume alot then you pay alot. If you consume little then you pay little. It is a fair system of taxation as the Gvt is not too concerned with how much money you make as far as income but knows it is collecting on the stuff you buy. It makes sense.
 
S

sheep3mom

Guest
mexicoruss said:
As a resident I pay almost nothing as far as Income tax. The IVA is a tax on everything you consume. If you consume alot then you pay alot. If you consume little then you pay little. It is a fair system of taxation as the Gvt is not too concerned with how much money you make as far as income but knows it is collecting on the stuff you buy. It makes sense.
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Except that the cost of consumption is a much higher percentage of low wage workers. They have less money to start with and pay a higher percentage of their money in food, water, etc. than those of us who have more and pay the same tax. Not a fair system at all imo. Do NOT want to start a discussion - just my opinion.
 
mexicoruss

mexicoruss

Lovin it in RP!
sheep3mom said:
Except that the cost of consumption is a much higher percentage of low wage workers. They have less money to start with and pay a higher percentage of their money in food, water, etc. than those of us who have more and pay the same tax. Not a fair system at all imo. Do NOT want to start a discussion - just my opinion.
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I will add my 2 cents as to why it is fair.

Me = People who have a little disposable income
Them = Those that have little materially including money.

One is not better than the other.

Me - I can afford to spend 1000 pesos at Ley for groceries, then I assume I will pay 16% tax on that
Them - They get by on 250 pesos at Ley, they assume to pay the 16% tax

So far we only are paying taxes on whatever we spend.

Me - I have a car and I pay for gas and tolls and maintenance. If I want to I can take the bus to Hermosillo and only pay for the ticket which includes IVA and gas and tolls
Them - they dont have that worry. They also can use the bus.

Me - I can earn way more money than I need to and not pay any income tax
Them - same thing

Both of us, we don't have to file tax reports personally every year to explain where we made our money and how much tax we have to pay on those earnings. We pay our taxes every time we spend.

Me - I live in a big house that uses electricity for everything, I pay for that
Them - small house less expense, less tax

This is just a sample of it.

A flat tax on consumerism is fair because you have the choice in some ways of how much you will consume. This would never work in a country that is based on consumerism. You cannot compare what you think is fair in the States to Mexico as it is apples to oranges.

Everybody complains about high prices and taxes.......it's gotta come from somewhere. When I was Stateside I paid over 36% of my income to taxes before I went to the store to buy stuff.......

I like this system, it works and my neighbors don't seem to mind not filing returns every year and being able to rat hole cash and not worry about it being unfairly taxed.
 
M

MIRAMAR

Guest
I don't like every business has to keep track of their input credits and sales collection- too much paperwork at too many levels of business. If you want tax the final person so only one business has to file the crazy forms
 
Roberto

Roberto

Guest
mexicoruss said:
I will add my 2 cents as to why it is fair.

Me = People who have a little disposable income
Them = Those that have little materially including money.

One is not better than the other.

Me - I can afford to spend 1000 pesos at Ley for groceries, then I assume I will pay 16% tax on that
Them - They get by on 250 pesos at Ley, they assume to pay the 16% tax

So far we only are paying taxes on whatever we spend.

Me - I have a car and I pay for gas and tolls and maintenance. If I want to I can take the bus to Hermosillo and only pay for the ticket which includes IVA and gas and tolls
Them - they dont have that worry. They also can use the bus.

Me - I can earn way more money than I need to and not pay any income tax
Them - same thing

Both of us, we don't have to file tax reports personally every year to explain where we made our money and how much tax we have to pay on those earnings. We pay our taxes every time we spend.

Me - I live in a big house that uses electricity for everything, I pay for that
Them - small house less expense, less tax

This is just a sample of it.

A flat tax on consumerism is fair because you have the choice in some ways of how much you will consume. This would never work in a country that is based on consumerism. You cannot compare what you think is fair in the States to Mexico as it is apples to oranges.

Everybody complains about high prices and taxes.......it's gotta come from somewhere. When I was Stateside I paid over 36% of my income to taxes before I went to the store to buy stuff.......

I like this system, it works and my neighbors don't seem to mind not filing returns every year and being able to rat hole cash and not worry about it being unfairly taxed.
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Sorry but you miss the basic fact that IVA and assorted Value Added taxes are the most regressive form of taxation. IT's basically a sales tax. Irrespective of your view through your rose colored glasses the IMPACT on daily living is much greater on low income. That's just the opinion of economists. And it matters not where you are. The impact is on basic needs, we all have to eat ya know. The economic impact of paying 16% of an income of 1000 pesos and that of 100,000 pesos is very great. At 100,000 after 16% you still have a lot to play with. It is certainly NOT a flat tax. Income tax in the US taxes based on the income side, the more you make the more you pay. IVA taxes on the outgo side and we all have the same basic costs.
 
mexicoruss

mexicoruss

Lovin it in RP!
Roberto said:
Sorry but you miss the basic fact that IVA and assorted Value Added taxes are the most regressive form of taxation. IT's basically a sales tax. Irrespective of your view through your rose colored glasses the IMPACT on daily living is much greater on low income. That's just the opinion of economists. And it matters not where you are. The impact is on basic needs, we all have to eat ya know. The economic impact of paying 16% of an income of 1000 pesos and that of 100,000 pesos is very great. At 100,000 after 16% you still have a lot to play with. It is certainly NOT a flat tax. Income tax in the US taxes based on the income side, the more you make the more you pay. IVA taxes on the outgo side and we all have the same basic costs.
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Oh ok....you are right and I am wrong, I get it.
 
D

dons2346

Guest
OK, I get it. 16% is what it is and those of us that can afford it, no problem. Those that are barely scraping by, it is a problem. 16%, to me is a pretty hefty sales tax.
 
Q

Queen of Kings

Guest
dons2346 said:
OK, I get it. 16% is what it is and those of us that can afford it, no problem. Those that are barely scraping by, it is a problem. 16%, to me is a pretty hefty sales tax.
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Look around Rocky Point a bit. The town is steeped in poverty. If you cannot or will not pay your fair share to keep the city running you might want to head elsewhere.
 
D

dons2346

Guest
Queen of Kings said:
Look around Rocky Point a bit. The town is steeped in poverty. If you cannot or will not pay your fair share to keep the city running you might want to head elsewhere.
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Did I say I didn't like the tax? All I wanted to know is why some businesses show the tax on a receipt and some don't.

And, by the way, yes I can afford it.
 
Roberto

Roberto

Guest
It can be confusing but it is the same in the US. The merchant is not required to collect the tax from a customer but is required to PAY the tax irrespective whether he collected it from the customer or not.
 
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