The minister pointed out that the measure was adopted with “great effort by the State, but convinced that the salary is not profit, but remuneration”. “Thus will be less than 600,000 employees throughout the country those who will pay the tax from these updates, fulfilling our commitment that of the total number of workers, less than 10% are those who pay the Income Tax”, he explained. Massa pointed out that in addition, personal deductions and sections of the tax scale will be updated to generate “tax relief” for higher-income earners.
Although there are fewer workers paying the tax, in reality, the non-taxable minimum, the scales and the floor should be higher if they were adjusted based on the inflation that occurred during the period. Between October 2021 and the same month of 2022 (which is the reference month for the RIPTE) inflation was 88%, so the floor should be $620,000 and more than 300,000 people could stop payingr. In fact, Congress delegated power to the Executive Branch to adjust this floor if necessary. What applies as of January 1st is established by the Income Tax Law, so It is not a decision of the executive branch.
In fact, the Non-Taxable Minimum (MNI) will become $173,834 gross for a single person from the first day of 2023. Whoever exceeds that limit begins to be reached. What happens is that he only pays from $440,000 because when the law was modified in 2020 so that fewer workers pay, the MNI did not increase but the special deductions that generate the similar effect although it does not exempt from the tax. “The legislators have not taken into account the dimension of the implementation problems generated by the application of the increased special deductions both for employers, for the Federal Administration of Public Revenues (AFIP) itself and for professionals and companies that are dedicated to the settlement of salaries”, explained the tax official Sebastián Domínguez. The accountants consider that, as the Tax is ordered, practically each case has a different form of liquidation.. To prevent those who are reached from starting to pay already from the higher scales with rates of 30% to 35%, sSpecial deductions are available for salaries ranging from $404,062 to $466,017 and thus maintain the progressivity of what is charged on a fraction of 30.4% of formal wage earners.
The problem with taxes on work already acquires another dimension. According to a report from the Social Debt Observatory of the Catholic University (UCA), 53.6% of the labor force does so irregularly. Income Tax it is charged on a fraction of 30.4% of formal wage earners and 16% of public employees who gThey generate a collection of such a magnitude that currently the State cannot do without.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
