Federico Sturzenegger toned down Javier Milei’s promise to remove 90% of taxes

He Minister of Transformation and Deregulation of the State, Federico Sturzeneggerhe toned down the promise made by Javier Milei during the national network, who assured that the Government seeks to remove 90% of taxes. After the president’s statements, Sturzenegger clarified that the Libertarian administration will not carry out burden reductionbut a simplification in administrative terms.

“He is not talking about eliminating 90% quantitatively, but in terms of the number of instruments. To lower the tax burden by 90% we would have to lower spending by 90%,” the minister explained. In addition, Sturzenegger announced that currency competition “It is already in DNU 70. That freedom is already there, Argentines will choose which currency to operate with”.

One of the most resonant promises was the announcement that the Government will seek to reduce the amount of national taxes by “90% and return to the provinces “the tax autonomy that they should never have lost.” However, hours after his announcement, one of the star ministers of the libertarian administration came out to lower the price of the President’s announcements.

“He is not talking about eliminating 90% quantitatively, but in terms of the number of instruments. To lower the tax burden by 90% we would have to lower spending by 90%, He has done it by 30%, a historic thing, but he is talking about the fact that we have a very complex tax structure.with a lot of taxes that raise very little, and it is time to start simplifying and concentrating on the most important taxes,” Sturzenegger clarified in radio statements.

In this sense, the official assured that the country has “a lot of tiny taxes that raise little” and that the promise of the libertarian leader “aims to simplify the tax structure”. “Every government expense is a tax that we Argentines have to pay,” the minister stated on this topic.

At the same time, he also assured that the coin competition announced by Milei “is already in DNU 70/2023” announced on the national network days after Milei’s inauguration. “That freedom is already there, Argentines will choose which currency to operate with”

“Argentines will be able to use the currency they want in their daily transactions. Every Argentine is going to be able to buy, sell and invoice in dollars or the currency you considerexcept the tax paymentwhich for now will continue to be in pesos,” he explained.

Finally, Sturzenegger did highlight the need to move forward with the “deep chainsaw” in the near future. “What we call the deep chainsaw is a common sense thing: sit down in each area, ask what it does, and define if it makes sense that the national government does it and if there is corruption behind it” with the aim of creating “an efficient State that costs the taxpayer little,” he concluded.

Javier Milei’s promises for 2025: 90% reduction in taxes, exit from stocks and currency competition

In the speech commemorating his first year in government, Javier Milei announced that he will promote a tax reform, the end of the stocks will be a reality and that free currency competition will effectively begin. It will also deepen the chainsaw and will promote a free trade agreement with the US.

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Regarding tax reform, the head of state announced that they will seek to reduce the amount of national taxes by 90% and return them to the provinces “the tax autonomy that they should never have lost“.

Furthermore, the president stated that “next year the exit from the stocks will be a reality” and explained: “For this we are working on a definitive solution to the problem of Central Bank stockswhich can occur either through a new program with the Monetary Fund; or through an agreement with private companies,” he concluded.

Another of his most important announcements was that there will be free currency competition, something that was already included in DNU 70/2023. “All Argentines will be able to use the currency they want in their everyday transactions. This means that from now on, every Argentine You will be able to buy, sell and invoice in dollarsor in the currency you consider; except for the payment of taxes, which for now will continue to be in pesos,” he stated.

Regarding investments, the president promised to give logical fiscal framework for investments of more than US$200 million. “We already have a request for investment approval for more than US$11.8 billion, and there are announcements for billions more in sectors such as infrastructure, mining, steel, energy, automotive, technology, oil and gas,” he stated.