THE MAIN SOURCE OF INCOME OF THE POOR IS LABOR

Welfare programs cannot prevent the increase in poverty because the main source of income for the poor continues to be their jobs. To improve the social situation, it is not necessary to keep adding and overlapping welfare programs, but rather to go ahead with transformations to make employment more dynamic.        

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ONLY 5% OF THE INCREASE IN EMPLOYMENT IS IN A FORMAL COMPANY

The increase in unemployment does not say as much about labor deterioration as the stagnation in formal employment in private companies and the sustained increase in informality observed in the last decade. Reversing this degradation requires macroeconomic order and a profound modernization of labor rules. 
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CHILD ALLOWANCE DISCRIMINATES AGAINST GOOD FORMAL JOBS

The accumulation of welfare benefits on families receiving the AUH discriminates against families of similar income with formal jobs. This is inequitable and discourages job formalization. The child allowance system must be unified and benefits must be defined on a family income basis instead of job characteristics.

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SME MUST BE FREED FROM CENTRALIZED COLLECTIVE AGREEMENTS

The government is afraid that the collective agreements may set wage increases that undermine the decline in inflation. The origin of the problem is the highly centralized negotiation of wages. The solution is not to impose ceilings on wages but to allow SMEs to disengage from highly centralized collective agreements.   (more…)

BAD TAXES MUST BE REPLACED BY GOOD TAXES

The government started to reduce the PAIS tax progressively. This will complicate the public finances and warns that it is impossible to eliminate all distortionary taxes supported only by spending cuts. It is necessary to move towards a tax unification where the best taxes absorb the worst taxes. (more…)

THE PENSION LAW WORKS IN FAVOR OF FISCAL SURPLUS

Arguing that the law on pension indexing conspires against fiscal balance, the president reacted emphatically against Congress. With a cooler head, he would realize that the law, by consolidating the real loss of pension value suffered since 2017, is an unprecedented opportunity to give sustainability to the fiscal surplus.
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DIGITAL PAYMENT SHOULD NOT BE ONLY FOR WAITERS

The initiative to facilitate the payment of tips with debit and credit cards and digital wallets is positive. But the most important thing is still pending, which is to massify the use of digital money. In order to achieve this, it is essential to implement the comprehensive organization of the tax system provided for in the May Agenda. (more…)

GENDER VIOLENCE BUDGET INCREASED BY 24 TIMES

During the government of Alberto Fernandez, the Ministry of Women, Gender and Diversity was created with a substantial budget. The complaints against it confirm a very low efficiency in managing these funds. This is another example of the need to organize the State, instead of continuing to add bureaucracy.        

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RIO NEGRO PROVES THAT CO-PARTICIPTION MUST BE ELIMINATED

Río Negro was awarded the “Argentina LNG” project. However, the province will receive, via co-participation, a tiny proportion of the total national taxes generated by the project. Only by eliminating co-participation will incentives be put in place for the provinces to promote massively productive investments.

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DECENTRALIZING COLLECTIVE BARGAINING TO AVOID DEVALUATION

Increasing competitiveness without devaluing requires structural reforms that are difficult to implement. However, Brazil, in an environment of difficulties similar to Argentina’s, undertook an ambitious labor and tax modernization. This shows that progress in structural reforms is possible.        

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