Implementation of Tax Incentives to Avoid Unemployment Caused by the Economic Situation due to the COVID-19 Health Emergency in Mexico

ABSTRACT

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 crisisii. According to Article 25 of the Political Constitution of Mexicoiii, 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 employmentiv. 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. © AesthetixMS 2021