The decline in productivity explains the paradox that labor costs are high for employers, while people perceive that they earn low wages. This cannot be solved by devaluation, but rather by structural reforms that create a more favorable environment to increase productivity. (more…)
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.
The decline in productivity explains the paradox that labor costs are high for employers, while people perceive that they earn low wages. This cannot be solved by devaluation, but rather by structural reforms that create a more favorable environment to increase productivity. (more…)
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…)
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