2024-01-24 04:25:08
The Executive Branch sent to Congress during the night of this Tuesday a definitive personal income project to replace the fourth category Income Tax. The initiative is called “Personal Income Tax” and contemplates a non-taxable minimum of $2,360,829 on the salaries of employees in a dependency relationship.
The draft of the bill “Personal Income Tax” also establishes that the aforementioned amount will be adjusted quarterly through the Consumer Price Index (IPC) provided by the National Institute of Statistics and Censuses (INDEC), effective as of April 2024. In turn, new scales were established that contemplate progressive rates of between 5% and 35%.
The two faces of Milei: the one who promised to cut off his arm before raising a tax to replenish profits
Caesar Litvintax specialist, shared with Argentine News his analysis of the project that will be discussed in Congress in the next few hours. The specialist highlighted that The main virtue of the initiative lies in its progressiveness that is given to the tribute through the new scales. In this sense, he indicated that “the technique of the previous government is left aside, which took the floor instead of the non-taxable minimum and applied the highest rate.”
On the other hand, he pointed out that, with this change in regulations, “when the employee reaches the non-taxable minimum, the lowest scales are applied, giving the tax the progressive nature of the tax.” Another benefit that Litvin highlighted is that the project contemplates different opinions regarding the treatment of overtime, productivity bonuses and cash failures, “which means there are greater deductions and therefore less taxes are paid.” However, he emphasized that the initiative does not equate the situation of the self-employed, “who are always left behind” in tax updates.
Massa criticized the government’s economic measures and stressed that “salary is not profit”
The Renovador Front, led by the former candidate for president of Unión por la Patria, Sergio Massa remarked this Tuesday that “salary is not profit” and criticized some of the economic and tax measures carried out by the national government, ensuring that they harm workers.
“While 0.76 points of GDP are taken to the National Treasury increasing the PAIS Tax and transferring the cost to prices; they take VAT refunds from people0.25 of the GDP,” he points out in the statement released from the party’s X (formerly Twitter) account, which is signed by Sergio Massa.
In this way, the Renewal Front criticized the national government’s decision to reverse the VAT refund program for purchases made in stores with a debit card that began during Massa’s management in charge of that portfolio. Furthermore, they warned that “While they take 1.3 of the GDP due to super harvest, devaluation and increased withholdings to the Treasury, they return 0.23 of the GDP to the richest in the country in personal assets”.
“While they give away 1.4 of the GDP in taxes to those who evaded, They restore profits to give alms to the governors (0.17 of the GDP), thus harming 823 thousand workers“, they pointed out regarding the proposal to restore the income tax floors. “Oddities of freedom. Salary is not Profit”, the political organization concluded in the statement.
The comings and goings of the Income Tax
In September of last year, a month before the general elections, the Minister of Economy and presidential candidate, Sergio Massa, promoted a project to modify the Income Tax law which consisted, among other issues, of eliminating the fourth category and therefore, exempted some 700,000 employees from payment in a dependency relationship.
This project It was approved by 135 to 103 votes in Deputies and had, among others, the support of the deputies of La Libertad Avanza: Javier Milei himself and his presidential running mate, Victoria Villarruel. Then, in the Senate, it was approved by the majority of the then ruling party in the Senate.
But once Milei assumed the presidency, several provinces asked to participate in what is known as the check tax because they had lost income due to the modification that they had supported at that time.
Martín Guzmán and Guillermo Michel crossed paths over the income tax
On December 19, eight Peronist governors highlighted the need to seek “compensation tools” for the provincial coffers in the face of the strong devaluation of the peso and the “loss of co-shareable resources”, although they considered that “The reversal of the Income Tax would not be the appropriate path”but rather the “70%” co-participation of the tax on the check.
The statement was made following a meeting of governors with President Milei, the Minister of the Interior, Guillermo Francos, and other national authorities. The response was immediate and the head of state stated that “in no way” will the tax be “shared in the check.” “Going backwards with Profits is the solution that allows the provinces to redirect their accounts”Milei later said in an interview he gave to Rivadavia radio.
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