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…)

INCOME TAX HELPS REDUCE INEQUALITY

The INDEC reported a sharp increase in inequality. At the same time, Congress approved the reinstatement of the income tax, rectifying the opportunistic reform of September 2023. The law is relevant, but a more comprehensive tax system reform, such as the one proposed in the May Act, is still pending.         (more…)

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…)

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…)