Mexican President Teams Up With Trump to Stop Global Crisis
López Obrador, a leftist, announced the Tax Incentive Decree for the Northern Border Region which will create free zones near the border that are over 15 miles wide and will reportedly encompass approximately 2,000 miles. The San Diego Union-Tribune reports that the free zones will:
- Reduce income taxes from 30 percent to 20 percent
- Slash the Value Added Tax for goods coming into the country from 16 percent to 8 percent
- Boost the minimum wage 100 percent to 176 pesos ($8.80), and
- Make fuel prices the same as those in the U.S.
"It’s going to be the biggest free zone in the world," López Obrador said. "It is very important to project for winning investment, creating jobs and taking advantage of the economic strength of the United States."
Supporters of the president's initiative believe it will lower the incentive for illegal immigration.