There is a widespread perception that a person whose income is close to 40,000 pesos is already rich, however, less than 1% earn that amount per month; In Mexico, 59% of the population barely exceeds the poverty line.
In Mexico there is a clear idea that there is poverty and inequality, however, the notions about “who are the rich” are imprecise.
The Welfare with Equity study, towards a new social pact, carried out jointly by the Espinosa Yglesias Studies Center (CEEY), the College of Mexico and the French Agency for Development (AFD), shows that Mexicans have a clear perspective of Poverty levels in the country as they estimate that 40% of people have an income of 2,548 pesos per month. In reality, the study points out, 59% of Mexicans have this average monthly income.
On the contrary, Mexicans consider that the minimum income to be rich is 38,248 pesos and there is a widespread perception that 35% of people have these perceptions on a monthly basis.
“In Mexico, less than 1% of the population receives or exceeds that level of income,” says Aurora Ramírez, a professor at the Colegio de México.
According to the study, more than 60% of inequality is transmitted from one generation to another and, in the last 25 years, the percentage of people living in poverty has not been substantially reduced.
Currently, the income of 10% of the richest population is exponentially higher than those of 10% of the population with lower income.
As a result of the phenomenon of inequality, half of those born in the poorest households remain in that condition, and only a quarter of them manage to overcome the poverty line.
“Among them, less than three out of every hundred born in the most disadvantaged strata manage to reach the upper end. In the south of the country, the figures are discouraging: 65 out of every 100 born at the bottom end of the social ladder remain there during adulthood; in addition, the possibility of ascending to the upper end is almost half that in the rest of the country ”.
The researcher explains that regional differences in social promotion options are related to issues such as youth unemployment rate, school opportunities, housing infrastructure, and economic growth.
Pay less taxes
For Mexicans, there is a perception that too much of the salary is paid for taxes.
The majority of Mexicans believe that they allocate 39% of their salary to the payment of taxes when the real proportion is only 22%.
The Mexicans agree that it would be optimal for the richest people to have more demanding tax schemes, that is to say, that the payment of taxes is 40% in the case of the wealthiest, 27% for the middle class and 14% for the poorest.
During the presentation of the study, Arturo Herrera Secretary of the Treasury considered that the figure of 22% is optimistic compared to the public account, which shows that the payment of taxes does not reach 17% of the income.
The official said that social programs such as scholarships or pensions for older adults contribute to generating a minimum floor in closing income gaps, however, said that raising revenue is a necessary task, because if the collection of ISR If it were due, the government would have an additional billion pesos in revenue.
“This requires a relevant reform and will require an ethical position to build in the coming years,” he said.
Marcelo Delajara, Specialist in economic growth and labor market at CEEY explains that social programs are perceived as necessary emergency measures, however, states that public policy must also contain an institutional design of social protection to generate sufficient opportunities for all.
“In all surveys, the main income is labor, the measures of greater depth are those that have an impact on the strengthening of the labor market,” added Rodolfo de la Torre, director of CEEY.
Source: forbes mx
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