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GRADUALISM IN TAX CUTS IS NOT THE BEST OPTION

The partial and transitory export tax reduction is only a palliative for producers and a great fiscal effort for the federal state. This is evidence that the best strategy to eliminate taxes is not a partial one but an integral reorganization of all national and provincial taxes.       

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STRENGTHENING SURPLUS REQUIRES COORDINATION WITH THE PROVINCES

In 2024, the chronic fiscal deficit was reversed. The challenge for 2025 is to make it sustainable. This requires a Fiscal Coordination Agreement between the Nation and the Provinces to eliminate overlapping functions and taxes. This Agreement is also urgent in recovering the drop in infrastructure investment.

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FOR LELIQ NOT TO COMEBACK, THE PUBLIC SECTOR MUST BE ORDERED

A great achievement of the government was to dismantle the Central Bank’s leliq without a Bonex plan or hyperinflation. To consolidate it, it is now necessary to advance in the integral organization of the State, including the three levels of government. This requires an agreement between the Nation and the provinces.        

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3 OF THE 5 MAIN TAXES MUST BE ELIMINATED

It is necessary not only to reduce the number of taxes, but even more important and challenging is to eliminate taxes that collect a lot, but are very distorting. To this end, a Fiscal Coordination Agreement between the nation and the provinces is essential to organize and strengthen VAT and Income Tax.

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INCREASES IN GDP ARE NOT ENOUGH TO BOOST FORMAL EMPLOYMENT

It is expected that next year the economy will grow and with it formal employment and real wages. Evidence shows that, for this to happen, better labor regulations are needed. A central aspect is to give companies the freedom to negotiate with their workers outside collective bargaining agreements.

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CAUDILLISMO IS GENERATED BY COPARTICIPATION

The Court declared unconstitutional the indefinite reelection in Formosa. Apparently, this would put an end to caudillismo. However, the power of caudillismo is not in the indefinite reelection but in the co-participation regime that allows and encourages clientelism.      

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HOW TO RETURN TAX AUTONOMY TO THE PROVINCES

The devolution of tax autonomy to the provinces is a very pertinent idea. To implement it, an agreement between the majority of the provinces adopting the principle of fiscal correspondence is necessary. That is the one who decides the expenditure also has to collect the tax to finance it and be accountable. 

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100% FREE MEDICINE IS A BAD HEALTH POLICY

PAMI’s decision to stop providing free medicines caused uneasiness even though the indiscriminate distribution of medicines harms health. Drug management should be based on responsible prescription, shared financing with the patient and targeted subsidies for the poor with automatic and simple access.     

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ONLY 1 OUT OF EVERY 5 DOLLARS EXPORTED GOES TO MERCOSUR

MERCOSUR is not fulfilling the objectives of its creation. Instead of being a tool to facilitate and promote international trade, it has been working as a factor that enhances protectionism. The best alternative is to return to the founding objectives. (more…)

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HIGHLY COMPETITIVE SECTORS GENERATE ONLY 1 OUT OF 10 JOBS

The high competitiveness of sectors such as agribusiness, energy, mining and the knowledge industry generates a low exchange rate, which is a disincentive for other sectors that create most of the jobs. The solution is not to devalue but to quickly and thoroughly address the reforms announced in the May Act.        

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