US: Mexican government to buy 2.8 million homes as Trump administration seeks billions in tax cuts
The Mexican government will buy 2,829 homes in the United States, a move that comes after months of talks with President Donald Trump’s administration on how to address the ballooning budget deficit and the country’s growing wealth gap, the Mexican foreign ministry said on Monday.
The two sides have met for the first time on the issue of how to pay for the homes, which are to be built in the San Luis Potosí, a sprawling area in southern Mexico City, the ministry said.
Mexico’s President Enrique Pena Nieto, a Republican, has said he would like to sell some of his own properties to the US in an effort to help the US fund the countrys infrastructure, a key focus of Trump’s election campaign.
“I hope to make a deal with the government of the United State, because there is a very big gap in our budget and a lot of our debt is going to be coming due to Mexico, and this is the way we can do this,” Pena Niño said last month.
Trump has previously criticized Mexico’s tax system as unfair to American companies, saying that the country has “the highest tax rates in the world”.
The Trump administration has said it will push for Mexico to cut taxes on capital gains, a measure that has become a political flashpoint in Mexico.
Mexico has been struggling to raise enough revenue to pay its $4.7 trillion debt and that has made it difficult for the country to meet its obligations.
The country has been in default on more than $400 billion in debt since 2009, according to the International Monetary Fund.