Bargaining for a New Fiscal Pact in Mexico

The authors consider the malaise with the present set-up of fiscal federalism in Mexico from the points of view of the main players-the federal government, the states, the municipalities, and the citizen voters-in order to identify the areas of pot...

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Main Authors: Webb, Steven B., Gonzalez, Christian Y.
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, D.C. 2013
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2004/04/4242293/bargaining-new-fiscal-pact-mexico
http://hdl.handle.net/10986/14106
id okr-10986-14106
recordtype oai_dc
spelling okr-10986-141062021-04-23T14:03:20Z Bargaining for a New Fiscal Pact in Mexico Webb, Steven B. Gonzalez, Christian Y. FISCAL FEDERALISM FISCAL REFORMS TAXES VALUE ADDED TAXES STATE TAXES SALES TAXES TAX COLLECTION SERVICE DELIVERY ACCOUNTABILITY NEGOTIATED REVENUE SHARING TAX ADMINISTRATION TRANSFERS ACCOUNTABILITY AUTHORITY AUTONOMY BASIC EDUCATION CITIES CITIZENS CONSTITUTION CORRUPTION DEBT DEBT SERVICE DECENTRALIZATION DEMOCRACY DEVOLUTION EVASION EXCISE TAXES EXECUTION FEDERAL GOVERNMENT FEDERALISM FISCAL FISCAL BALANCE FISCAL DECENTRALIZATION FISCAL FEDERALISM FISCAL MANAGEMENT GOVERNMENT ACCOUNTABILITY GOVERNMENT RESOURCES INCOME INFLATION INSTITUTIONAL CAPACITY INSTITUTIONAL DEVELOPMENT INSURANCE LEVELS OF GOVERNMENT LOCAL ACCOUNTABILITY LOCAL TAX MAYORS MUNICIPAL GOVERNMENT MUNICIPAL GOVERNMENTS MUNICIPAL INFRASTRUCTURE MUNICIPALITIES NATIONAL GOVERNMENTS POLITICAL FEASIBILITY PROPERTY TAX BASE PUBLIC SECTOR PUBLIC SERVICES RATIONALIZATION REGULATORY SYSTEM REVENUE SHARING ROADS SMALL MUNICIPALITIES SOCIAL INFRASTRUCTURE STATE GOVERNMENT STATE GOVERNMENTS STATE REVENUES STATE TAXES SUBNATIONAL GOVERNMENT SUBNATIONAL GOVERNMENTS TAX ADMINISTRATION TAX AUTHORITY TAX BURDEN TAX COLLECTION TAX PAYMENT TAX RATE TAX RATES TAX REVENUES TAXATION TRANSPARENCY UNFUNDED MANDATES VOTERS The authors consider the malaise with the present set-up of fiscal federalism in Mexico from the points of view of the main players-the federal government, the states, the municipalities, and the citizen voters-in order to identify the areas of potential common interest as well as the direct conflicts. There is a zero-sum game on some issues, like the size of aggregate transfers, but not on others, like raising tax collection and improving accountability for service delivery. The authors consider bargain packages that combine mutually beneficial changes and thus might obtain broad enough political support. They analyze the bargaining packages in two main tracks-one concerning tax assignments, revenue sharing, and tax administration, and another concerning the conjunction of earmarked transfers and accountability for service provision. An important result is that almost all states would find it fiscally attractive to impose a sales tax that replaced part of the federal value-added tax (VAT), even if the federal government reduced revenue sharing enough to cover half the cost of reducing the VAT rate to make room for the state tax. 2013-06-21T13:43:50Z 2013-06-21T13:43:50Z 2004-04 http://documents.worldbank.org/curated/en/2004/04/4242293/bargaining-new-fiscal-pact-mexico http://hdl.handle.net/10986/14106 English en_US Policy Research Working Paper;No.3284 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, D.C. Publications & Research :: Policy Research Working Paper Publications & Research Latin America & Caribbean Mexico
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic FISCAL FEDERALISM
FISCAL REFORMS
TAXES
VALUE ADDED TAXES
STATE TAXES
SALES TAXES
TAX COLLECTION
SERVICE DELIVERY
ACCOUNTABILITY
NEGOTIATED REVENUE SHARING
TAX ADMINISTRATION
TRANSFERS ACCOUNTABILITY
AUTHORITY
AUTONOMY
BASIC EDUCATION
CITIES
CITIZENS
CONSTITUTION
CORRUPTION
DEBT
DEBT SERVICE
DECENTRALIZATION
DEMOCRACY
DEVOLUTION
EVASION
EXCISE TAXES
EXECUTION
FEDERAL GOVERNMENT
FEDERALISM
FISCAL
FISCAL BALANCE
FISCAL DECENTRALIZATION
FISCAL FEDERALISM
FISCAL MANAGEMENT
GOVERNMENT ACCOUNTABILITY
GOVERNMENT RESOURCES
INCOME
INFLATION
INSTITUTIONAL CAPACITY
INSTITUTIONAL DEVELOPMENT
INSURANCE
LEVELS OF GOVERNMENT
LOCAL ACCOUNTABILITY
LOCAL TAX
MAYORS
MUNICIPAL GOVERNMENT
MUNICIPAL GOVERNMENTS
MUNICIPAL INFRASTRUCTURE
MUNICIPALITIES
NATIONAL GOVERNMENTS
POLITICAL FEASIBILITY
PROPERTY TAX BASE
PUBLIC SECTOR
PUBLIC SERVICES
RATIONALIZATION
REGULATORY SYSTEM
REVENUE SHARING
ROADS
SMALL MUNICIPALITIES
SOCIAL INFRASTRUCTURE
STATE GOVERNMENT
STATE GOVERNMENTS
STATE REVENUES
STATE TAXES
SUBNATIONAL GOVERNMENT
SUBNATIONAL GOVERNMENTS
TAX ADMINISTRATION
TAX AUTHORITY
TAX BURDEN
TAX COLLECTION
TAX PAYMENT
TAX RATE
TAX RATES
TAX REVENUES
TAXATION
TRANSPARENCY
UNFUNDED MANDATES
VOTERS
spellingShingle FISCAL FEDERALISM
FISCAL REFORMS
TAXES
VALUE ADDED TAXES
STATE TAXES
SALES TAXES
TAX COLLECTION
SERVICE DELIVERY
ACCOUNTABILITY
NEGOTIATED REVENUE SHARING
TAX ADMINISTRATION
TRANSFERS ACCOUNTABILITY
AUTHORITY
AUTONOMY
BASIC EDUCATION
CITIES
CITIZENS
CONSTITUTION
CORRUPTION
DEBT
DEBT SERVICE
DECENTRALIZATION
DEMOCRACY
DEVOLUTION
EVASION
EXCISE TAXES
EXECUTION
FEDERAL GOVERNMENT
FEDERALISM
FISCAL
FISCAL BALANCE
FISCAL DECENTRALIZATION
FISCAL FEDERALISM
FISCAL MANAGEMENT
GOVERNMENT ACCOUNTABILITY
GOVERNMENT RESOURCES
INCOME
INFLATION
INSTITUTIONAL CAPACITY
INSTITUTIONAL DEVELOPMENT
INSURANCE
LEVELS OF GOVERNMENT
LOCAL ACCOUNTABILITY
LOCAL TAX
MAYORS
MUNICIPAL GOVERNMENT
MUNICIPAL GOVERNMENTS
MUNICIPAL INFRASTRUCTURE
MUNICIPALITIES
NATIONAL GOVERNMENTS
POLITICAL FEASIBILITY
PROPERTY TAX BASE
PUBLIC SECTOR
PUBLIC SERVICES
RATIONALIZATION
REGULATORY SYSTEM
REVENUE SHARING
ROADS
SMALL MUNICIPALITIES
SOCIAL INFRASTRUCTURE
STATE GOVERNMENT
STATE GOVERNMENTS
STATE REVENUES
STATE TAXES
SUBNATIONAL GOVERNMENT
SUBNATIONAL GOVERNMENTS
TAX ADMINISTRATION
TAX AUTHORITY
TAX BURDEN
TAX COLLECTION
TAX PAYMENT
TAX RATE
TAX RATES
TAX REVENUES
TAXATION
TRANSPARENCY
UNFUNDED MANDATES
VOTERS
Webb, Steven B.
Gonzalez, Christian Y.
Bargaining for a New Fiscal Pact in Mexico
geographic_facet Latin America & Caribbean
Mexico
relation Policy Research Working Paper;No.3284
description The authors consider the malaise with the present set-up of fiscal federalism in Mexico from the points of view of the main players-the federal government, the states, the municipalities, and the citizen voters-in order to identify the areas of potential common interest as well as the direct conflicts. There is a zero-sum game on some issues, like the size of aggregate transfers, but not on others, like raising tax collection and improving accountability for service delivery. The authors consider bargain packages that combine mutually beneficial changes and thus might obtain broad enough political support. They analyze the bargaining packages in two main tracks-one concerning tax assignments, revenue sharing, and tax administration, and another concerning the conjunction of earmarked transfers and accountability for service provision. An important result is that almost all states would find it fiscally attractive to impose a sales tax that replaced part of the federal value-added tax (VAT), even if the federal government reduced revenue sharing enough to cover half the cost of reducing the VAT rate to make room for the state tax.
format Publications & Research :: Policy Research Working Paper
author Webb, Steven B.
Gonzalez, Christian Y.
author_facet Webb, Steven B.
Gonzalez, Christian Y.
author_sort Webb, Steven B.
title Bargaining for a New Fiscal Pact in Mexico
title_short Bargaining for a New Fiscal Pact in Mexico
title_full Bargaining for a New Fiscal Pact in Mexico
title_fullStr Bargaining for a New Fiscal Pact in Mexico
title_full_unstemmed Bargaining for a New Fiscal Pact in Mexico
title_sort bargaining for a new fiscal pact in mexico
publisher World Bank, Washington, D.C.
publishDate 2013
url http://documents.worldbank.org/curated/en/2004/04/4242293/bargaining-new-fiscal-pact-mexico
http://hdl.handle.net/10986/14106
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