Rodríguez explained the project and justified the viability to implement it during this year, after the first experience in 201 when the law was sanctioned. Thus he argued that it is possible to “extend one or two more years” the Solidarity Contribution to Great Fortunes as a “good option to reduce the fiscal deficit” from the beginning according to the IMF.
Speaking to FM 97.9Une, the economist clarified today that “capital taxes are progressive, since they are paid as wealth increases”, while “consumption taxes, such as VAT, are paid by all sectors alike.
In this context, the CEPA specialist stressed that “property taxes are not an Argentine invention and exist throughout the world.” For example “in Brazil they represent 4.6% of the collection; in Uruguay, 4.4%; in Chile, 2 percent; in the UK, 3.7%. But, for example, in France, it amounts to 12.2 percent”he detailed.
Eugenia Rodríguez warned that there is “misinformation” regarding the alleged “tax pressure” and revealed a key fact. “In Latin America this pressure is in the order of 20%, in Europe it is more than 30%” she assured today.
He also pointed out that in the case of Argentina, “48% of the collection of taxes from the National State are taxes on consumption, while only 4.3% responds to property taxes, which is paid by taxpayers who have a wealth superior to that of the common society in general”.
Along these lines, Rodríguez stressed, it is necessary for Argentina to advance in “increasingly progressive” tax systems as a key to “satisfying the needs of society as a whole.” That is why he highlighted the role of the State, which must “encourage that those who have the most, pay the most.”
Keys to the agreement with the IMF
“Within the framework of this principle in agreement with the IMF, what is going to happen with the issue of controls on tax evasion is key,” insisted the economist. From there comes the idea of thinking about the alternative of extending “One or two more years the Solidarity Contribution to the Great Fortunes, because its collection represented 0.5 of the GDP and was fundamental for last year’s collection”he highlighted.
This is the objective of some sectors within the national government, in order to have a source of income that allows compensating the deficit of payments and expenses generated both by the agreement with the IMF, as well as the issuance of subsidies for strategic sectors or of greatest need.
“Perhaps the continuity of this solidarity contribution, which reaches this minimum universe of taxpayers, who represent a fundamental part of the concentration of the country’s wealth, could be an option for reducing the deficit,” Rodríguez justified.
“These sectors were the ones that benefited from the circuit that allowed, in the government of Mauricio Macri, this historic loan from the IMF to leave through capital flight,” concluded the CEPA economist.
Source: Ambito
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