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Mexico’s Camimex Chamber of Mining thinks you’re fucking stupid

The patsies that hang out at “Big Al” Korelin’s place were wrong, are wrong and will continue to be wrong about this and so many other market issues. And we can confidently predict they’ll remain sad and angry about the unfairness of it all until the day they die.

A version of this appeared in IKN227 yesterday (less swearing of course) along with the chart you see and I thought that would be it, but I’m just so wound up about those assholes at Camimex that the need to rant needs assuaging. A version of this table…

…has been popping up here and there in the Spanish language reports and analysis I’ve been reading about the Mexico government’s plans to introduce a royalty payment on mining activity in the country, for example in this report at CNN. It comes from Camimex, the country’s Chamber of Mining, and is an obvious part of their anti-royalty lobbying that goes in hand with the “oh everything will be a disaster” and the “we’re already taxed to the hilt in this country” arguments they’ve been trying to promote. Which are false, but that’s another story as we’re not looking at the subjective nonsense they’re feeding us, because apart from the complete lack of mention about tax breaks and offsets miners get in Mexico the plain and simple math that they offer us is BS. What Camimex wants you to believe is that miners pay 40% tax on revenues, via a 30% corp tax and a 10% worker’s participation tax. In other words, if a miner has $1m in revenues, it ends up with $600k. But what Camimex doesn’t bother mentioning to José Publico scanning its table full of stupid is that the worker participation deduction comes before any national taxation, so that $1m in revs works like this:
$1m …minus 10% WP …equals $900k….then 30% corp tax is applied…taking $270k from the $900k…and leaving Mr Miner with $630k.
Got that? The tax rate as proposed by Camimex is 37%, not 40%. So the message to Camimex is…
….quit the BS and start paying your royalties just like every other mining country in the whole world (except one: China) willyaz?

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