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Sergio Massa will raise the profit floor to $1,770,000 and will send an initiative to Congress

Sergio Massa will raise the profit floor to $1,770,000 and will send an initiative to Congress
September 12, 2023 – 00:00

They are seeking changes by law starting in 2024, but there will be a decree so that the relief applies from October. They will stop paying workers and retirees, except for 90,000 management positions and “privilege pensions.”

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The Minister of Economy and presidential candidate of Unión por la Patria, Sergio Massa, ratified his decision to advance a strong modification of the Income Tax regime for the fourth category. Yesterday, in a meeting with union leaders and authorities of the Chamber of Deputies, he confirmed that he will send a bill to Congress so that the majority of workers and retirees are exempt from paying the tax and that only the “highest incomes” are reached. that exceed the floor of 15 minimum wages. Thus, only about 90,000 company directors, management positions and beneficiaries of “privilege pensions” will be taxed. If approved, the regulatory modification would come into effect in 2024, but there will be a decree so that the increase in the Profit floor will take effect from next month.

This was announced by Massa himself in Plaza de Mayo in an improvised event at the end of the meeting, where the candidate spoke in front of the union columns that had mobilized to the doors of the Palacio de Hacienda to support the initiative. “Salary is not profit, it is remuneration,” he said and asked the workers to accompany him in the October elections.

According to a document accessed by Ámbito, the official project consists of the elimination of the fourth category and its replacement by the concept “higher income”, which will encompass only those who receive more than 15 minimum vital and mobile salaries, which per day Today they are equivalent to $1,770,000 gross. In Economy they explain that, in this way, they will only pay “CEO, management, deputy management, qualified positions and retirements and privilege pensions”, which represent 0.88% of the total registered jobs in the country.

The initiative that will reach Congress establishes that the income floor will be adjusted in January and July of each year automatically based on the equivalent of 15 minimum wages and that the 22% benefit per unfavorable area will be maintained. It also proposes the elimination of “distortions of personal and general deductions that force the worker to be aware of administrative issues” and creates a simplified card system called “higher income” that will generate “less operational burden for employers that will result in a reduction of the cost of compliance with tax obligations.”

Massa asked opposition legislators to support the proposal, as some raised on social networks last week after the minister announced on C5N that he would advance this initiative. As the tax is annual, if approved by both chambers, the new system will come into effect from January 2024. However, the Executive will publish a decree so that the new floor will come into force on October 1 of Profits.

According to official calculations, the measure will mean that the State will stop collecting nearly $1 billion a year. However, Massa assured that this fiscal cost will be offset by the higher income from the PAIS tax on imports and the higher VAT collection that will boost consumption derived from the salary improvement of up to 21% for benefited workers and retirees. for the initiative.

In Economy, they estimate that, if there were no changes in the Income Tax, the workers reached would be 890,000. With the increase in the floor, around 800,000 will stop paying it in October. 19.1% correspond to workers in the manufacturing industry; 14.5% to defense, security, education and public administration; 11.9% to employees of the banking and insurance sector; 8.1% to services; and the remaining 46% to other activities. The Government of Mauricio Macri had increased the number of people reached from 1,194,149 to 2,425,880. In addition to asking the workers to accompany him with the boto, Massa asked those who benefited from the measure to use the improvement in their income to buy some good (that is, to put it into consumption and the internal market) and not to go to buy dollars, one of the possible destinations for this reinforcement of the purchasing power of a segment of wage earners who, in general, has the capacity to save.

Source: Ambito

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