In the midst of the transition with the Government of Alberto Fernandez, the elected president, Javier Milei, gave details regarding the economic measures that he will take once he takes office on December 10. In this regard, he confirmed that will not reimpose the tax on Profits and will continue in force VAT refund.
“Tax cuts always benefit the people”, the economist first said in statements to the TN program A Dos Voces. And he specified that both Elimination of Profits for workers such as the refund of Value Added Tax will continue.
“These two measures are maintained”he claimed Milei and explained that for “Public spending will be lowered elsewhere” so that public accounts are sustainable.
In turn, he confirmed that service companies “contracts will be respected”while maintaining that if a fiscal adjustment is not made, the country “ends up in hyperinflation and 95% of Argentines poor.”
The changes that already govern Profits
On September 28, the Senate approved the law sent by Sergio Massa that modified the Income Tax, raising the floor of the Non-Taxable Minimum to almost two million pesos, which is equivalent to fifteen minimum wages, vital and mobile and that will govern from 2024.
The measure accompanies a decree issued by the Executive Branch at the request of the minister that implemented changes in the tax for the months of October, November and December. Once the period stipulated by the DNU has expired, the law approved by Congress will take effect.
The Earnings reform focuses on the modification of the fourth category, a universe currently made up of 80,000 workers. That is, the tax will change its nomenclature to Tax on “Higher earnings” and will be paid only by those who obtain monthly income higher than the new tax floor, which was set in $1,770,000.
Milei assured that the adjustment will fall on politics
The libertarian delved into his plan to reduce the deficit and expressed: “The adjustment is going to come anyway. So, the question is, who makes the adjustment? Historically, politics made the adjustment be paid for by the private sector. “Well, this time the adjustment will have to be paid for by politics. It will fall on the State, not on the private sector.”
In this regard, he stated that the percentage of votes he obtained in the ballot “is a mandate” to advance this cut.
“Argentina is on the verge of the worst crisis in its history. It has the worst of the (Raúl) Alfonsín crisis, that is, the chance of hyperinflation. It has the worst of the Rodrigazo crisis of ’75, and it has social indicators worse than what we had in 2001. The adjustment is going to come anyway. So, the question is, who makes the adjustment? Historically, the policy made the adjustment be paid for by the private sector. This time the adjustment will be to have to pay for the policy. It will fall on the State, not on the private sector,” he indicated.
Doubts continue about the Minister of Economy
The elected president avoided giving the name of his Economy Ministerbut in any case he said that he will be in charge of defining the guidelines for the area: “I have a Minister of Economy, but I am going to decide the vision.”
In this regard, he announced that “Luis Caputo is a person who is in a position to be in office without a doubt, he is someone who has the necessary expertise to dismantle the monetary problem we have. and give it a solution from the financial markets to get out of the Leliqs problem and end the stocks. He is someone who is in a position to solve that. To close the dollar issue, “she evaluated.
Regarding his Cabinet he confirmed Diana Mondino as chancellor already Guillermo Francos at the head of the Ministry of the Interior, while for Emilio Ocampo in front of the central bank He said “it’s up to him.”
“I really like the proposal you have Emilio Ocampo for him Central bank, But we have to see if the market situation allows for a solution like the one he proposes to be implemented and if he is willing to implement an operation other than the one he originally planned. It is the decision of Emilio”, the president-elect stressed.
Source: Ambito
