Friday, September 29, 2023

Harsh criticism from economists for being an “inflationary” and “regressive” measure

The announcement of the Minister of Economy and presidential candidate Sergio Massa, pointing out that workers who receive a gross salary of up to 1.77 million pesos will be exempted from Income, aroused strong criticism among economists who are not aligned with the ruling party.

They consider it a measure fiscally regressive, which benefits the highest income share of wages while poverty indicators, for example, do not stop rising.

And they also warned that it will be paid for by more inflation, and from now on, the ones who will suffer the most from this event are low income citizens. The following is a synthesis of criticisms expressed through social networks

Hernán Lacunza: (JXC Economist). “Until now, 10% of employees with salaries above $700,000 pay Income. 100% of workers earning an average salary of $140,000 pay inflation. With a fiscal deficit of 4% GDP, emission equivalent to 11% GDP and inflation of 150% per year, the Government proposes to lower the profit (in the amount of 1% GDP) so that the poor can relieve the rich ”

Esteban Domecq, head of the consulting firm Invecq: “The income tax reduction will be financed by the inflation tax increase. Result: 600,000 beneficiaries, 47,000,000 damaged. “An election madness”

Isidro Guardarucci, associate economist at FIEL. “Employee income reform will consolidate us as “the craziest statistic in the world.” If we want more states, we start by imitating what it does best: less production burden and more progress.

Eduardo Levy Yeyati: (JXC Economist) “In a world without magic where resources don’t fall from the sky, a small income tax is an additional tax on inflation.”

Caesar Litvin, branch. Raise the income tax floor: “it’s a short-lived pain relief”

Julian Folgar; Professor Public Finance FCE-UBA. “Compared to Argentina, fewer people pay it than in the world, including our neighbors (even before the reform). Argentina has the highest personal income (“earnings”) tax floor in the region and above developed countries. And, naturally, it collects taxes that are much lower than what developed countries and most of our neighbors do.

Nation World News Desk
Nation World News Desk
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