MEXICO CITY (AP) - President Andres Manuel Lopez Obrador has launched an ambitious plan to stimulate economic activity on the Mexican side of the U.S.-Mexico border despite recent U.S. threats to close the border entirely.
Mexico plans to slash income and corporate taxes to 20 percent from 30 percent for 43 municipalities in six states just south of the U.S., while halving to 8 percent the value-added tax in the region.
Business leaders and union representatives have also agreed to double the minimum wage along the border, to 176.2 pesos a day, the equivalent of $9.07 at current exchange rates.
Lopez Obrador says the idea is to stimulate wage and job growth via fiscal incentives and productivity gains. President Donald Trump has repeatedly complained that low wages in Mexico lure jobs from the U.S.
(Copyright 2019 The Associated Press)
- Officials Working to Improve Economy on Mexican Side of Border
- Local business celebrates Mexican holiday
- Judge sides with Trump on challenge to Mexico border wall
- Oroville Downtown Business Improvement District in the works
- Environmentalists Seek to Block New Mexico Border Wall Work
- Mexican Uber driver in US illegally charged with 4 rapes
- UPDATE: 13 killed in helicopter crash after Mexican quake
- Report: Mexican man assumed American identity for 37 years
- Mt. Shasta Ski Park Helps Local Economy
- Redding economy gets boost from Rodeo Week