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BBC Learning English
Weekender
Mexicans and Economies
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Yvonne: Hello, this is bbclearningenglish.com - I'm Yvonne Archer!
Now terms like 'the black economy' and 'indirect taxes' shout 'business', but
how do they connect to ordinary people? We'll find that out from a Mexican
point of view as we do business on today's Weekender!
Miguel Molina, an Editor with the BBC's Latin American Service, is one of
only about 5,000 Mexicans who live, work and study here in the UK. But
although they're 'abroad' - living in another country - they're still extremely
important to Mexico. Why?
Miguel Molina
Historically, the main source of income for Mexico and Mexicans has been oil. However,
the second most important source of income has become the money that Mexicans abroad
send to Mexico. So we're talking about billions of pounds really.
Yvonne: For many years, 'historically', Mexico's 'main source of income' has been oil
- so most of the government's money is made by selling it. But after oil, the
largest amount of money comes from Mexicans abroad who are sending huge
amounts of money back to their families! The money's often sent through
'official channels' - financial institutions like banks that are recognised by the
government. So how does the Mexican government get their part of all that
money?
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Miguel Molina
...Well, in the form of indirect taxes and taxes to the families eventually who receive the
money. But so far, the Mexican government has decided not to touch those monies because
if they did, people would stop sending money through those official channels, such as banks
and, you know financial houses and exchange houses.
Yvonne: Ah! For example, to change their pounds into local money, a family pays
bank charges. Then the bank pays some of that money to the government in
taxes. That's an 'indirect' tax because the family doesn't pay it to the
government itself. And if the government changed all that, as Miguel
explained, Mexicans abroad would find other ways to send their money home.
Ways which probably wouldn't involve any taxes at all.
In the UK, most Mexicans are students but as we've been hearing, there are
some who work. They still manage to send money home when they don't
earn very much. Who are they and what's the term that Miguel uses to help
us understand their situation?
Miguel Molina
There are some people who came as tourists and ended up staying and they are now a part of
the black economy.
Yvonne: Tourists who come to the UK are not allowed to work and must leave the
country when they've agreed to. But like people from many countries, some
Mexicans don't go home. They find jobs but can't pay taxes on what they
earn in the UK because the government would find out that they're still here.
They became a part of 'the black economy'. So do they pay any taxes?
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Miguel Molina
Whether you're legally or illegally in any country, you end up paying taxes - indirect taxes.
Every time you buy a bottle of water, every time you buy a beer, every time you buy anything,
you pay taxes. So, I understand, a very important part of the income of any government.
So it's not that they get a tax-free existence. Nobody does.
Yvonne: Aha - indirect taxes again, this time on things like a bottle of water. So
everyone pays tax. As Miguel puts it 'there's no such thing as a tax-free
existence'. So really it's good news for both the Mexican and the UK
government. But sad news for others....
Miguel Molina
There are towns in Mexico where only women, old men and children live because all men of
working age are abroad. Mostly in the United States.
Yvonne: The men who are old enough to leave school and find jobs and those who are
still young enough to work, do just that - but abroad. They send money home
to feed their families and to pay school fees but at what cost? Would you be
able to leave your family behind to find work?
Visit us now at bbclearningenglish.com for some of the language you'll need
to continue discussing today's Weekender topic.