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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…)

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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…)

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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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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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BAD TAXES MUST BE ELIMINATED WITHOUT WAITING FOR CUTS IN FISCAL SPENDING

The financial surplus has been achieved thanks to a strong reduction in public spending. But an important role is also played by the growth of tax collection driven by very bad taxes. This alerts on the importance and urgency of tax reform foreseen in the May Pact. (more…)

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IT IS NOT NECESSARY TO VETO THE PENSION LAW BUT TO IMPLEMENT IT PROPERLY

With the argument of protecting the fiscal surplus, President Milei threatens to veto the bill that modifies the pension indexing rule. However, the bill protects the public accounts more than the government’s DNU. Therefore, in order to make the fiscal balance sustainable, the best alternative is to implement the law properly.   (more…)

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HANDING OUT GOODS IS THE WORST PRACTICE OF CLIENTELISM

Delays in the distribution of foodstuffs are causing intense controversy. This is not an isolated case, since the distribution of goods by the national government is a common practice. The solution is to eliminate the intervention of federal officials in areas that are the responsibility of the provinces and their municipalities.    (more…)

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UNIVERSITIES NEED ORDERING, NOT ADJUSTING

The massive university protest put the discussion of the university budget on the agenda. Just when the government celebrates the fiscal surplus. Faced with chronic problems of underfunding and mismanagement, the solution is not to adjust but to improve the organization of the State, in this case, that of the universities.  (more…)

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EXCHANGE RATE DEVALUATION IS NOT A SUBSTITUTE OF STATE ORDERING

Inflation decreases with strong exchange rate appreciation. Inflation in terms of hard currency revives the debate on the level of the exchange rate. Devaluation is not the solution but a mere compensation for bad policies. Therefore, more important than the pace of devaluation is the pace of reordering the State. (more…)

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