Mexicans and Economies

BBC 1 Learning 2 EnglishWeekenderMexicans and EconomiesYvonne: Hello, this is bbclearningenglish.com - I’m YvonneArcher!
　　Now terms like ‘the black economy 3’ and ‘indirect 4 taxes’
　　shout ‘business’, but how do they connect to ordinarypeople? We’ll find that out from a Mexican point of viewas we do business on today’s Weekender!
　　Miguel Molina, an Editor with the BBC’s Latin 5 AmericanService, is one of only about 5,000 Mexicans who live, workand study here in the UK. But although they’re‘abroad’ - living in another country - they’re stillextremely important to Mexico. Why?
　　Miguel MolinaHistorically, the main source 6 of income for Mexico andMexicans has been oil. However, the second most importantsource of income has become the money that Mexicans abroadsend to Mexico. So we’re talking about billions of poundsreally.
　　Yvonne: For many years, ‘historically’, Mexico’s ‘mainsource of income’ has been oil– so most of the government’s money is made by sellingit. But after oil, the largest amount of money comesfrom Mexicans abroad who are sending huge amounts of moneyback to their families! The money’s often sent through‘official channels’ - financial institutions like banksthat are recognised by the government. So how does theMexican government get their part of all thatmoney?
　　…Well, in the form of indirect taxes and taxes to thefamilies eventually who receive themoney. But so far, the Mexican government has decided 7 notto touch those monies because if they did, people wouldstop sending money through those official channels, such asbanks and, you know financial houses and exchange houses.
　　Yvonne: Ah! For example, to change their pounds intolocal money, a family pays bank charges. Then thebank pays some of that money to the government in taxes.
　　That’s an ‘indirect’ tax because the familydoesn’t pay it to the government itself. And if thegovernment changed all that, as Miguel explained, Mexicansabroad would find other ways to send their money home. Wayswhich probably wouldn’t involve any taxes at all.
　　In the UK, most Mexicans are students but as we’ve beenhearing, there are some who work.  They still manageto send money home when they don’t earn very much. Whoare they and what’s the term that Miguel uses to help usunderstand their situation?
　　Miguel MolinaThere are some people who came as tourists and ended upstaying and they are now a part of the black economy.
　　Yvonne: Tourists who come to the UK are not allowed to workand must leave the country when they’ve agreed to. Butlike people from many countries, some Mexicans don’t gohome. They find jobs but can’t pay taxes on what theyearn in the UK because the government would find out thatthey’re still here. They became a part of ‘the blackeconomy’. So do they pay any taxes?
　　Whether you’re legally 8 or illegally 9 in any country, youend up paying taxes - indirect taxes.
　　Every time you buy a bottle of water, every time you buy abeer, every time you buy anything, you pay taxes. So,I understand, a very important part of the income of anygovernment.
　　So it’s not that they get a tax-free existence.
　　Nobody does.
　　Yvonne: Aha - indirect taxes again, this time on thingslike a bottle of water. So everyone pays tax. As Miguelputs it ‘there’s no such thing as a tax-free existence’.
　　So really it’s good news for both the Mexican and the UKgovernment.  But sad news for others.…Miguel MolinaThere are towns in Mexico where only women, old men andchildren live because all men of working age are abroad.
　　Mostly in the United 10 States.
　　Yvonne: The men who are old enough to leave school and findjobs and those who are still young enough to work, do justthat - but abroad. They send money home to feed theirfamilies and to pay school fees 11 but at what cost? Would yoube able to leave your family behind to find work?
　　Visit us now at bbclearningenglish.com for some of thelanguage you’ll need to continue discussing today’sWeekender topic.