The Ministry of Economy disclosed a detail of the adjustment that the Government will try to apply in 2024. One of the points that they will seek to address is the reversal of the Earnings reform, a project promoted by Sergio Massa and that had the support of Milei.
After the advertisements of the Minister of Economy, Luis Caputo, The government announced in detail the settings that will apply during the 2024 to eliminate the fiscal deficit. In the plans of the libertarian team is reverse changes in income tax.
Caputo announced this Tuesday the package of measures that will be implemented starting in the next few hours, among which are the devaluation jump until reaching $800 pesos for each dollar.
The “openness” of the exchange rate, as the minister called it, will be accompanied by the suspension of the official guideline, the review of state contracts, the non-tendering of new public works, the reduction of transfers to the provinces, the cut in energy and transportation subsidies and the increase in the AUH and plans.
Milei will seek to reverse the Earnings reform
However, hours later, in a unexpected announcement, The “X” account published a detail of the design of cutout of the public spending to achieve fiscal balance. There is a postulate reversal of the earnings reform that the former minister implemented Sergio Massa.
According to the calculation of the ministry that leads Caputo, the retraction of the increase in the minimum tax would generate an increase in the collection of 0.4% of GDP.
It is worth remembering that during the last months of the Frente de Todos government, Massa decided to raise the profit floor to fulfill the promise that no worker pays the tax.
Although initially the measure was taken by decree and its validity was to last until January 2024, the bill was later discussed in Congress and the tax was modified. The reform had the support of the current president Javier Milei, who was in favor of reducing taxes.
Now, according to the information released by Caputo’s ministry, the government of Milei will seek to reform the law so that the universe achievable by the Income Tax is once again expanded.
Source: Ambito
