Implementation of Tax Incentives to Avoid Unemployment Caused by the Economic Situation due to the COVID-19 Health Emergency in Mexico
Since the end of March 2020 millions, as the COVID-19 pandemic emerged as a health emergency, working people had to stay at home, telework or had to face consequences of the crisis such as low wages or layoffs.[i] In Mexico unemployment became a major problem for the economy. Although the country took measures to contain the imp act of the pandemic on the labor market, these have not been sufficient; the development and implementation of activities that create incentive or promotions are indispensable components of the recovery or sustainability of industries in times of crisis[ii]. According to Article 25 of the Political Constitution of Mexico[iii], the State is responsible for guiding national development and ensure that it is comprehensive and sustainable; the State shall, according to the Constitutional provision, ensure the stability of public finances and the financial system to help generate favorable conditions for economic growth and employment[iv]. I shall argue however that the fiscal policies implemented to contribute as determining factors in the sector of growing unemployment due to the COVID-19 pandemic have not been adequate even though the optimal measures were being taken under a more socialist system of governance in place during the two years.