2023-09-12 13:30:54
The Minister of Economy, Sergio Massa, announced that starting October 1, the Income Tax floor will rise to 1,770,000 pesos per month. This measure will exempt some 800,000 taxpayers from payment and will leave out 90 percent of those who currently pay it. To talk regarding the controversial measure, Channel E contacted the economist Aldo Abram who stated that, “The big problem is that due to this tax reduction there will be a loss of revenue”.
How the withdrawal of the payment of Profits will be financed
“After the PASO and before the increase in the wholesale exchange rate was made, they launched a series of measures to rebuild people’s income”he explained Abram. And he continued: “At that time, the excess spending that the government was targeting was greater than 1.9% of GDP and now we will have to see how this tax reduction is going to be financed.”.
According to the economist, there does not seem to be an adjustment policy that guarantees some type of availability of resources and if this does not happen, no, if there is not a search for resources, “They say it will come with some tax increase or creation of a new one”. And he added: “For a country that already has a tax pressure that places us in 21st place among 191 countries, it would be extremely serious.”.
For the economist, if there are no resources to carry out this measure “It will end up being financed with increasing production of pesos, generating a greater loss of purchasing power of our currency.”.
A measure that affects the most vulnerable sectors
“By helping those who pay Income Taxes today, who are not exactly the poorest, what they are going to do is accelerate inflation, which precisely hits the poorest who are not the ones who pay this tax.“, he expressed Abram.
According to the conomist, we must spend austerely, because “If any tax is lowered at this time, the only thing it does is generate more impoverishment because it will have to be financed with an inflation tax.”.
And finally, he added. “With this measure, those who have the least will become poorer.”.
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