Sinaloa is grappling with a severe crisis, and estimates suggest losses soaring to 30 billion pesos. In response, Paloma Sánchez Ramos, a Sinaloan Senator representing the Institutional Revolutionary Party (PRI), has introduced the Economic Emergency Law. This legislation aims to compel the government to take responsibility for crises that directly impact Mexican families.

The proposed law encompasses several urgent measures to alleviate the financial strain on Sinaloan residents and businesses. One of the key proposals is a complete tax exemption for individuals earning less than 15,000 pesos per month. This mirrors similar initiatives in the U.S., like Earned Income Tax Credit (EITC) expansions aimed at providing tax relief to low-income working families.

“While Sinaloa is in flames and the Sinaloans lose their employment, their heritage and their business, the government continues to charge you taxes as if you could pay the light, water and mortgage,”

Paloma Sánchez Ramos, Sinaloa Senator

Senator Sánchez Ramos emphasized the perceived inaction of the federal government in the face of the crisis, highlighting the struggles faced by countless individuals in the state. Her statement resonates with a growing sentiment in some U.S. states, where residents feel that federal assistance is insufficient during local emergencies.

Key provisions of the Economic Emergency Law

Senator Sánchez Ramos’s Economic Emergency Law proposes several relief measures, including:

• Mortgage Payment Suspension: A four-month suspension of mortgage payments for affected families, akin to mortgage forbearance programs offered during economic downturns in the U.S.
• Utility Exemption for Small Businesses: Exemption from electricity and water charges for small businesses, similar to utility assistance programs for small businesses in some U.S. states.
• Unrestricted Support Programs: Work and support programs accessible to all, avoiding favoritism, ensuring fair access to resources.
• Lost Loans: Provision of lost loans to prevent further business closures, a measure analogous to Small Business Administration (SBA) disaster loans in the U.S.

The proposal for “lost loans” is particularly noteworthy. These loans, effectively grants, would provide crucial capital to struggling businesses, preventing further closures and job losses. This approach aligns with the Biden administration’s focus on supporting small businesses through grants and low-interest loans.

“work and support for people, but for all, not just for friends of power; Lost credits to avoid more closures.”

Paloma Sánchez Ramos, Sinaloa Senator

This statement underscores the senator’s concern that aid should be distributed equitably, avoiding political favoritism. This is a common concern in both Mexican and U.S. politics, where accusations of cronyism and preferential treatment often arise.

Political Implications and Challenges

the Economic Emergency Law is not without its challenges. Given the current political landscape, with Morena holding power at the federal level, securing the necessary support to pass the law could prove difficult. The senator has directly challenged the Morena-led government, stating:

“If the government of Morena cannot control this insecurity crisis at least, to protect their workers and those who hold the country.”

Paloma Sánchez Ramos, Sinaloa Senator

This statement directly puts the onus on the ruling party to act, potentially creating political friction. Opposition parties in the U.S. frequently enough employ similar tactics, using legislative proposals to highlight perceived failures of the ruling party.

The senator’s initiative has sparked debate about the balance of power between state and federal governments in Mexico, a topic frequently discussed in the U.S. regarding federalism.