He italian economic miracle (in Italian: il miracolo economico) is the name given and used by historians and economists to the period of prolonged and sustained economic growth in Italy in the period between the final years of the Second World War and until the end of the 1960s. The formalization of the economy and the thriving proliferation and multiplication of small and medium-sized businesses was the cornerstone that explains the power of Italy today. Another witness case is Israeli, which was a pioneer in the 80s in the application of government SME credit programs accompanied by commercial advice, accounting and legal support, which awakened its power as an employer of small and medium-sized entrepreneurs.
Already in current times and a little over a decade ago, due to the success of its entrepreneurial ecosystem, Israel began to be known in the world as the “startup nation.”
These experiences leave us Argentines a message: SMEs play an indispensable role for development. But let’s see what our country is doing to push and empower SMEs.
Although every peso it places is true, the State in SMEs is money that “comes back” over time, because They are credits and not subsidies. It is no less true to say that a measure with low fiscal cost and extremely powerful effect on the employment and the investments, It could be to exempt the incorporation of new workers from any tax or pension contribution for 2 years, extending the period to 3 years in the case of first employment or people over 45 years of age. In the 3rd year the tax rate would be 25%, the 4th year 50% and only in the 5th year 100%.
Someone could say that this measure would defund the pension system and put another barrier to the health system. I wonder: what does a worker who receives a salary of 100 thousand a month do with his money? The answer is only one: he uses everything to live. That is, it is money that goes to consumption.
As it is, that worker contributes 21 thousand VAT monthly. 5 thousand gross income and 1.2 of tax on the check and a figure that is difficult to determine but let’s average another 7 thousand pesos that those who sell products and services will pay in income tax. That is, this new worker will give 34.2 pesos per month to the state, so there is no defunding of pension or tax benefits. Otherwise, a virtuous circle of more formal employment and more investments by SMEs.
Argentine Entrepreneurs. SME entrepreneur
Source: Ambito
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