Implications of existing tax policy for cross-border activity between the United States and Mexico after NAFTA.

From: National Tax Journal | Date: June 1, 1994| Author: Gordon, Roger H.; Ley, Eduardo | Copyright information

The increased cross-border economic activity anticipated with the passage of the North American Free Trade Agreement will amplify the significance of tax policy differences between the US and Mexico. Though the two countries have similar tax schemes, the Mexico system accounts for inflation more actively, and lessees are the owners of leases for tax purposes, unlike under US law. US investors and the US tax system will have incentives to modify existing laws to become more harmonized with Mex...

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