We owe ourselves a comprehensive tax reform, which associates the development of the economy hand in hand with entrepreneurs. In that sense, Monday’s announcement of the Unexpected Income Taxwhich will operate as an additional tax to the Income Tax, which may be reduced to the extent that those earnings are reinvested, it is an incentive that goes in what I consider the correct direction towards where we must travel.
A progressive tax system not only will it help to reduce poverty, because it imposes a lower proportional tax burden on the sectors that live from their work (consumption has limits related to biology and not to the ability to pay taxes) but also will allow companies to increase the value of their assets by developing stronger domestic markets and will benefit from public policies aimed at earning more money.
Until we decide to have a genuine, honest and in-depth debate on the need for a change in the general tax regime and in evaluating the deadlines for putting the tax regulations into force (this is another chapter that deserves reflection because the changes in the rules have a lot to do with establishing taxes without due anticipation) I think that we must look favorably on these attempts to provide a little more progressiveness to a tax regime that only tends to increase the social gaps that are the ones that paradoxically reduce the value of the assets of our companies.
As announced in the proposal, The collection of this tax will be assigned to general income.so it will be part of the co-participation funds, which will bring some benefit to the financing of the federal system (As we conceive it in Argentina, which, as established by the 1994 Constitution, is another debate that we owe ourselves).
Beyond the conditions and extemporaneities that this Unexpected Income Tax proposal brings, I see the advantage of adding some progressivity to the tax system, but Above all, I hope that it will give rise to a public and participatory debate to modify our tax scheme.
It is not possible to expect a profound change in our economic functioning if we do not modify our tax system. For something our young people, who are not necessarily tax collectors but are sensible, choose to emigrate to countries where collection is based on progressive taxes.
Public Accountant and partner of SMS Buenos Aires.
Source: Ambito
