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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TO AVOID DEVALUATION PROVINCIAL SALES TAXE SHOULD BE ELIMINATED

One of the most eroding factors of competitiveness is the overlapping of VAT with provincial sales and municipal taxes. Brazil, with a similar problem, is moving to the unification of several taxes in the VAT. If Argentina does not follow the same path, competitiveness problems will worsen prolonging the recession.         (more…)

THE PARALLEL DOLLAR DOES NOT RICE, IT ACCOMPANIES INFLATION

Once again, the parallel dollar is a cause of concern. The government reacted boldly by announcing that it will intervene in the parallel dollar market to suck pesos out of the market. For this strategy to succeed, it is essential to accelerate the implementation of the structural reforms included in the May Act.         (more…)

TAXES ARE THE FIRST THING TO BE SIMPLIFIED

The Ministry of Deregulation and the State Transformation was created with the objective of simplifying State interventions. One priority transformation is taxation. The way is doing good taxes to absorb bad taxes so that the resulting increase in competitiveness will make the economy grow again.         (more…)