FIRE CONTROL PROVES THAT A COORDINATION AGREEMENT IS NEEDED

Once again, uncontrolled fire is generating serious damage and controversy. One controversial issue is the ambiguity in determining responsibilities between levels of government. Here, as in other social policy issues, the solution lies in a coordination agreement between the federal and the provincial states.         (more…)

TALK MORE ABOUT TAXES THAN REAL EXCHANGE APPRECIATION

The President stated that a real dollar lower than the historical one is consistent because conditions are very different from those of the past. He displayed solid arguments over it. But there is also evidence of factors that reduce competitiveness compared to the past, such as the increase of distortionary taxes.    

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1 OUT OF EVERY 3 AFFILIATES OF SOCIAL SECURITY DERIVE CONTRIBUTIONS

It was decided that the referral of contributions to healthcare companies ends. The measure overlooks that the problem is the people with insufficient contributions to cover the PMO. Instead of forcing affiliations, the Solidarity Redistribution Fund should be used to improve financing for lower-income families.      (more…)

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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