UNANIMITY IS NOT NECESSARY TO CHANGE COPARTICIPATION

The law on automatic distribution of ATNs does not harm the nation. In fact, it is an opportunity to move toward a more rational federal organization scheme. This is further evidence that a simple law is sufficient to change coparticipation, without requiring the unanimous agreement of all provinces. (more…)

DISABILITY LAW MAY NOT HAVE FISCAL COST

Disability law is a compendium of mistakes, where the only winners are the opportunists. The law does not improve disability coverage and, if properly implemented, does not have fiscal costs. However, it damages the macroeconomy because it was perceived as a relaxation of the fiscal balance strategy.         (more…)

MASS LITIGATION CONSPIRES AGAINST JOB CREATION

A recent court ruling illustrates how spurious litigation operates in the occupational risk system. Past experience shows that it increases labor costs, curtailing the creation of formal employment. The solution lies in harmonizing the criteria applied by provincial courts in assessing labor disability.         (more…)

PENSION BONUS REPEATS THE SAME MISTAKE AS THE MORATORIUM

The opposition aims to overturn the presidential veto on the law that increases and perpetuates the bonus paid to pensioners with lower incomes. As with the moratorium, the bonus is financially costly and socially unfair because it is received by people who, due to other sources of income, are not in a vulnerable situation.         (more…)

STATE PEDIATRIC HEALTH IS THE RESPONSIBILITY OF THE PROVINCES

Congress is promoting a national pediatric emergency law that the executive threatens to veto. The main flaw in the law is not that it jeopardizes fiscal balance, but that it has no chance of improving pediatrics, since state health is the responsibility of the provinces.         (more…)

THE PROVINCIAL “FEDERAL SHOUT” IS AN OPPORTUNITY FOR THE GOVERNMENT

Five provinces have formed a front called “Grito Federal” (Federal Shout) to differentiate themselves from La Libertad Avanza and Kirchnerism. Beyond its impact on the upcoming elections, this front could play a strategic role in unlocking structural reforms, particularly the signing of a new fiscal coordination agreement.         (more…)

REDUCED EXPORT DUTIES COSTLY FOR THE TREASURY, LITTLE TO AGRIBUSINESS

The reduction in export duties represents a significant fiscal effort but provides little relief for agribusiness. In order to move more quickly toward eliminating taxes that reduce the competitiveness of domestic production, a more comprehensive approach involving provincial and municipal governments is needed.        

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14% OF UNREGISTERED EMPLOYEES ISSUE MONOTRIBUTO INVOICE

Hiring under the Monotributo scheme is often used to circumvent labor legislation. New data from INDEC show that this practice is common among larger firms where informality is very low. Among micro-enterprises, where informality is concentrated, the practice is not widespread.         (more…)

PENSION LAW BRINGS BACK THE FISCAL DEFICIT

Congress approved reforms to the pension system, whose costs exceed the fiscal surplus. This is another failure by the ruling party and the opposition to agree on a joint strategy to rationalize the pension system, thereby achieving equity and sustainability in the fiscal balance.  (more…)

MERCADO LIBRE SHOWS THAT THE SOLUTION IS THE SUPER-VAT

Mercado Libre’s decision to differentiate online sales charges according to the tax burden applied by each province highlights another distortion caused by the provincial sales tax. Another reason why a super-VAT should absorb the provincial and municipal sales taxes.        

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